AUL American Series Fund, Inc.
Semi-Annual Report
June 30, 1999
This report and the financial statements contained herein are submitted for the
general information of the Participants. The report is not be distributed to
prospective investors as sales literature unless accompanied or preceded by an
effective prospectus of AUL American Series Fund, Inc., AUL American Unit Trust,
AUL American Individual Unit Trust, AUL American Individual Variable Life Unit
Trust or AUL American Individual Variable Annuity Unit Trust which contains
further information concerning the sales charge, expenses and other pertinent
information.
<PAGE>
Directors and Officers of AUL American Series Fund, Inc.
James W. Murphy, Chairman of the Board and President
James P. Shanahan, Director
Dr. Ronald D. Anderson, Director
Professor, Kelley School of Business
Indiana University, Indianapolis, Indiana
Dr. Leslie Lenkowsky, Director
Professor, Indiana University,
Center of Philanthropy, Indianapolis, Indiana
R. Stephen Radcliffe, Director, Vice President and Treasurer
Richard A. Wacker, Secretary
<PAGE>
A Message From The Chairman of the Board and President
The current economic expansion continues to surprise investors with its
longevity. It has now endured for 100 months, making it the longest peacetime
expansion in U.S. history. If the economy can remain on its current track for
another six months, it will achieve the distinction of being the longest
expansion of all time.
However, economic growth can represent a mixed blessing. The Federal Reserve has
been keeping a close eye on domestic growth watching for signs of inflationary
pressures. At its June 29-30 meeting, the Fed decided to take a pre-emptive step
by raising the Federal Funds rate by 25 basis points, representing the first
such increase since March 1997. The Fed is hoping that this modest move will
eliminate the need for more drastic action at some later date.
Bond prices declined steadily during the first half of the year as market
participants reacted to the surprisingly strong growth of the U.S. economy and
the rekindling of expectations for a rebound in the global economy. The ten-year
Treasury yield increased from 4.65% at the beginning of the year to over 5.75%
at the end of June.
As we began 1999, stock market performance was driven by large growth and
technology companies, the same as in 1998. But the increase in long-term
interest rates stalled the upward momentum in the equity market. The stock
market experienced a dramatic change in leadership in April as investors began
focusing on industries that would benefit from stronger global growth. This
rotation resulted in a remarkable rebound in economically sensitive and small
capitalization companies.
Investment performance for the AUL American Series Fund, Inc. for the first half
of 1999 was:
Equity Portfolio 10.9% Tactical Asset Allocation Portfolio 4.0%
Money Market Portfolio 2.1% Aggressive Investor Portfolio 6.4%
Bond Portfolio -1.6% Moderate Investor Portfolio 4.1%
Managed Portfolio 5.6% Conservative Investor Portfolio 2.6%
As we enter the second half of 1999, the marketplace remains vulnerable to
external surprises. The Federal Reserve will be closely watching the growth rate
of the U.S. economy. Without some moderation, the Federal Reserve may feel
forced to take additional action.
Y2K issues will also provide additional uncertainty as we near the end of 1999.
The performance numbers for the AUL American Series Fund, Inc. are net of
investment advisory fees and other expenses paid by each portfolio but do not
reflect specified contract charges and mortality and expense risk charges which
may be incurred when investing in a variable annuity contract. Past performance
is no guarantee of future results.
/s/ James W. Murphy
James W. Murphy
Chairman of the Board of Directors and President
Indianapolis, Indiana
July 15, 1999
1
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<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF NET ASSETS
June 30, 1999
(unaudited)
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Assets:
Investments at value $ 100,317,201 $ 98,747,184 $ 52,136,269 $ 76,838,283 $ 6,527,088
(cost: $80,811,509, $98,747,184,
$53,292,567, $68,062,056,
and $5,927,418, respectively)
Capital stock sold 48,984 - - - 191
Receivable for investments sold 934,903 400,000 - 437,890 -
Dividends and interest receivable 145,945 376,213 600,051 418,644 50,205
Other assets - - - - -
Deferred organization costs - - - - 1,757
Total assets 101,447,033 99,523,397 52,736,320 77,694,817 6,579,241
Liabilities:
Capital stock reacquired - 465,938 83,604 51,313 -
Distribution payable - 11,739 - - -
Payable for investments purchased 830,014 - 1,181,625 862,317 -
Accrued investment advisory fees 45,781 37,047 23,931 35,345 4,712
Accrued expenses 35,942 24,821 8,800 19,393 1,505
Organization costs payable - - - - 1,610
Total liabilities 911,737 539,545 1,297,960 968368 7,827
Net Assets $ 100,535,296 $ 98,983,852 $ 51,438,360 $ 76,726,449 $ 6,571,414
Shares outstanding 4,473,064 98,983,852 4,828,402 4,803,253 488,536
Net Asset Value per share $ 22.48 $ 1.00 $ 10.65 $ 15.97 $ 13.45
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF NET ASSETS (continued)
June 30, 1999
(unaudited)
LifeStyle Portfolios
<S> <C> <C> <C>
Aggressive Moderate Conservative
Investor Investor Investor
Assets:
Investments at value $ 7,538,545 $ 7,623,540 $ 6,512,423
(cost: $7,050,544,
$7,352,520, and
$6,415,078, respectively)
Capital stock sold 2,350 1,440 1,166
Receivable for investments sold 169,763 116,700 84,975
Dividends and interest receivable 21,206 35,056 38,928
Other assets 15,668 10,941 16,019
Deferred organization costs 5,866 5,866 5,866
Total assets 7,753,398 7,793,543 6,659,377
Liabilities:
Capital stock reacquired - - -
Distribution payable - - -
Payable for investments purchased 251,210 152,735 73,088
Accrued investment advisory fees 23,655 24,218 22,235
Accrued expenses - - -
Organization costs payable 5,925 5,925 5,925
Total liabilities 280,790 182,878 101,248
Net Assets $ 7,472,608 $ 7,610,665 $ 6,558,129
Shares outstanding 677,464 708,759 620,476
Net Asset Value per share $ 11.03 $ 10.74 $ 10.57
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF OPERATIONS
For the six months ended June 30, 1999
(unaudited)
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Investment Income:
Income:
Dividends (net of foreign $ 856,893 $ - $ - $ 395,622 $ 30,351
taxes withheld of $7,225, $0,
$0, $3,230, and $1,033,
respectively)
Interest 141,431 2,224,380 1,566,698 1,007,442 82,257
998,324 2,224,380 1,566,698 1,403,064 112,608
Expenses:
Investment advisory fee 237,298 211,447 127,243 185,425 26,101
Custodian and service agent fee 32,069 30,601 18,670 26,643 4,496
Professional fees 2,701 2,718 1,532 1,843 241
Amortization of deferred
organization costs - - - - 798
Director fees 2,943 2,631 1,527 2,263 94
Printing 10,410 8,344 4,794 6,721 -
Other 2,337 1,857 915 1,678 70
Total expenses before 287,758 257,598 154,681 224,573 31,800
reduction
Expense reduction - - - - (152)
287,758 257,598 154,681 224,573 31,648
Net investment income 710,566 1,966,782 1,412,017 1,178,491 80,960
Gain (Loss) on Investments:
Net realized gain 9,851,919 - (159,960) 4,450,261 (40,831)
Net change in unrealized
appreciation (582,828) - (2,100,116) (1,505,834) 221,905
Net gain (loss) 9,269,091 - (2,260,076) 2,944,427 181,074
Net Increase (Decrease) in
Net Assets from Operations $ 9,979,657 $ 1,966,782 $ (848,059) $ 4,122,918 $ 262,034
</TABLE>
The accompanying notes are an integral part of the financial statement.
4
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF OPERATIONS (continued)
For the six months ended June 30, 1999
(unaudited)
LifeStyle Portfolios
<S> <C> <C> <C>
Aggressive Moderate Conservative
Investor Investor Investor
Investment Income:
Income:
Dividends (net of foreign taxes
withheld of $798, $756,
and $355, respectively) $ 37,867 $ 30,137 $ 18,157
Interest 45,058 86,235 111,367
82,925 116,372 129,524
Expenses:
Investment advisory fee 23,920 24,710 22,179
Custodian and service agent fee 36,353 37,117 35,232
Professional fees 159 163 150
Amortization of deferred
organization costs 775 775 775
Director fees 140 142 132
Printing - - -
Other 71 73 68
Total expenses before 61,418 62,980 58,536
reduction
Expense reduction (30,423) (27,680) (29,948)
30,995 35,300 28,588
Net investment income 51,930 81,072 100,936
Gain (Loss) on Investments and
Foreign Currency:
Net realized gain on investments 194,097 162,281 129,931
Net realized loss on
foreign currency transactions (121) (121) (56)
Net change in unrealized
appreciation on investments 191,034 50,990 (63,461)
Translation of assets and
liabilities in foreign currencies - - -
Net gain 385,010 213,150 66,414
Net Increase in
Net Assets from Operations $ 436,940 $ 294,222 $ 167,350
</TABLE>
The accompanying notes are an integral part of the financial statement.
5
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS
Portfolio
<S> <C> <C> <C> <C>
Equity Money Market
Six months ended Six months ended
June 30, 1999 Year ended June 30, 1999 Year ended
(unaudited) Dec. 31, 1998 (unaudited) Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 710,566 $ 1,439,875 $ 1,966,782 $ 3,220,950
Net realized gain (loss) 9,851,919 10,566,405 - -
Net change in unrealized
appreciation (582,828) (5,994,103) - -
Increase (Decrease) in Net Assets
from Operations 9,979,657 6,012,177 1,966,782 3,220,950
Dividends and Distributions:
From net investment income - (1,440,136) (1,966,782) (3,220,950)
From net realized gain - (8,225,847) - -
Decrease - (9,665,983) (1,966,782) (3,220,950)
Shareholder Transactions:
Proceeds from shares sold 9,347,663 29,215,767 97,035,110 145,189,479
Reinvested distributions - 8,968,761 1,965,144 3,210,840
Cost of shares redeemed (14,277,577) (19,321,125) (82,071,655) (122,102,008)
Increase (Decrease) (4,929,914) 18,863,403 16,928,599 26,298,311
Net increase 5,049,743 15,209,597 16,928,599 26,298,311
Net Assets at beginning of year 95,485,553 80,275,956 82,055,253 55,756,942
Net Assets at end of year $ 100,535,296 $ 95,485,553 $ 98,983,852 $ 82,055,253
Shares sold 445,645 1,345,932 97,035,110 145,189,479
Reinvested distributions - 447,614 1,965,144 3,210,840
Shares redeemed (682,712) (899,821) (82,071,655) (122,102,008)
Net Increase (Decrease) (237,067) 893,725 16,928,599 26,298,311
Shares outstanding at beginning of year 4,710,131 3,816,406 82,055,253 55,756,942
Shares outstanding at end of year 4,473,064 4,710,131 98,983,852 82,055,253
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Portfolio
<S> <C> <C> <C> <C>
Bond Managed
Six months ended Six months ended
June 30, 1999 Year ended June 30, 1999 Year ended
(unaudited) Dec. 31, 1998 (unaudited) Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 1,412,017 $ 2,298,641 $ 1,178,491 $ 2,216,931
Net realized gain (loss) (159,959) 895,159 4,450,261 5,358,469
Net change in unrealized
appreciation (2,100,117) 327,099 (1,505,834) (2,340,871)
Increase (Decrease) in Net Assets
from Operations (848,059) 3,520,899 4,122,918 5,234,529
Dividends and Distributions:
From net investment income - (2,291,894) - (2,190,819)
From net realized gain - (816,901) - (4,289,275)
Decrease - (3,108,795) - (6,480,094)
Shareholder Transactions:
Proceeds from shares sold 16,904,245 43,342,207 6,884,002 21,066,727
Reinvested distributions - 3,108,795 - 6,480,094
Cost of shares redeemed (14,707,537) (31,491,315) (7,392,431) (13,666,306)
Increase (Decrease) 2,196,708 14,959,687 (508,429) 13,880,515
Net increase 1,348,649 15,371,791 3,614,489 12,634,950
Net Assets at beginning of year 50,089,711 34,717,920 73,111,960 60,477,010
Net Assets at end of year $ 51,438,360 $ 50,089,711 $ 76,726,449 $ 73,111,960
Shares sold 1,565,200 3,953,961 449,921 1,328,874
Reinvested distributions - 286,109 - 428,239
Shares redeemed (1,361,747) (2,867,165) (479,608) (869,396)
Net Increase (Decrease) 203,453 1,372,905 (29,687) 887,717
Shares outstanding at beginning of year 4,624,949 3,252,044 4,832,940 3,945,223
Shares outstanding at end of year 4,828,402 4,624,949 4,803,253 4,832,940
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Portfolio
<S> <C> <C> <C> <C>
Tactical Asset Aggressive Investor
Six Months ended Six Months ended March 31, 1998
June 30, 1999 Year ended June 30, 1999 (commencement)
(unaudited) Dec. 31, 1998 (unaudited) to Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 80,960 $ 151,146 $ 51,929 $ 50,317
Net realized gain (loss) (40,831) 160,641 193,976 79,091
Net change in unrealized
appreciation 221,905 14,520 191,035 296,966
Increase (Decrease) in Net Assets
from Operations 262,034 326,307 436,940 426,374
Dividends and Distributions:
From net investment income - (151,092) - (49,549)
From net realized gain - (38,730) - (22,684)
Decrease - (189,822) - (72,233)
Shareholder Transactions:
Proceeds from shares sold 424,106 2,415,625 710,325 6,428,191
Reinvested distributions - 149,415 - 11,097
Cost of shares redeemed (583,615) (684,871) (355,412) (112,674)
Increase (Decrease) (159,509) 1,880,169 354,913 6,326,614
Net increase 102,525 2,016,654 791,853 6,680,755
Net Assets at beginning of year 6,468,889 4,452,235 6,680,755 -
Net Assets at end of year $ 6,571,414 $ 6,468,889 $ 7,472,608 $ 6,680,755
Shares sold 32,557 184,743 67,298 654,923
Reinvested distributions - 11,650 - 1,097
Shares redeemed (44,233) (54,078) (34,114) (11,740)
Net Increase (Decrease) (11,676) 142,315 33,184 644,280
Shares outstanding at beginning of year 500,212 357,897 644,280 -
Shares outstanding at end of year 488,536 500,212 677,464 644,280
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Portfolio
<S> <C> <C> <C> <C>
Moderate Investor Conservative Investor
Six Months ended March 31, 1998 Six Months ended March 31, 1998
June 30, 1999 (commencement) June 30, 1999 (commencement)
(unaudited) to Dec. 31, 1998 (unaudited) to Dec. 31, 1998
Increase in Net Assets from Operations:
Net investment income $ 81,072 $ 89,061 $ 100,936 $ 118,173
Net realized gain (loss) 162,160 73,777 129,875 93,809
Net change in unrealized
appreciation 50,990 220,030 (63,461) 160,806
Increase (Decrease) in Net Assets
from Operations 294,222 382,868 167,350 372,788
Dividends and Distributions:
From net investment income - (88,193) - (117,427)
From net realized gain - (22,874) - (37,694)
Decrease - (111,067) - (155,121)
Shareholder Transactions:
Proceeds from shares sold 606,256 6,611,350 403,373 6,102,927
Reinvested distributions - 17,784 - 16,586
Cost of shares redeemed (93,500) (97,248) (293,835) (55,939)
Increase (Decrease) 512,756 6,531,886 109,538 6,063,574
Net increase 806,978 6,803,687 276,888 6,281,241
Net Assets at beginning of year 6,803,687 - 6,281,241 -
Net Assets at end of year $ 7,610,665 $ 6,803,687 $ 6,558,129 $ 6,281,241
Shares sold 58,339 667,640 38,885 614,081
Reinvested distributions - 1,777 - 1,631
Shares redeemed (8,972) (10,025) (28,367) (5,754)
Net Increase (Decrease) 49,367 659,392 10,518 609,958
Shares outstanding at beginning of year 659,392 - 609,958 -
Shares outstanding at end of year 708,759 659,392 620,476 609,958
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
EQUITY PORTFOLIO
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (92.8%)
Aerospace (4.4%)
Boeing Co. 51,100 $ 2,257,981
Precision Castparts Corp. 51,400 2,184,500
4,442,481
Automotive & Auto Parts (8.3%)
Bandag, Inc. 59,700 2,070,844
Carlisle Companies, Inc. 40,700 1,958,688
Ford Motor Co. 49,900 2,816,231
TBC Corp.* 203,200 1,435,100
8,280,863
Banks & Financial (10.6%)
American Express Co. 6,300 819,788
Associates First Capital
Corp. 24,924 1,104,445
Bank One Corp. 37,663 2,243,302
Citigroup, Inc. 51,000 2,422,500
Ohio Casualty Corp. 50,200 1,813,475
Washington Mutual, Inc. 61,085 2,160,882
10,564,392
Broadcasting & Publishing (2.5%)
Chris-Craft Industries, Inc.* 30,848 1,453,712
Meredith Corp. 22,600 782,525
Moore Corp., Ltd. 30,400 254,600
2,490,837
Electrical Equipment
& Electronics (2.5%)
Baldor Electric Co. 126,180 2,507,827
2,507,827
Entertainment & Leisure (3.7%)
CPI Corp. 36,500 1,204,500
Fleetwood Enterprises, Inc. 95,800 2,532,712
3,737,212
Furniture & Apparel (14.2%)
Hillenbrand Industries, Inc. 42,100 1,820,825
Kimball International 82,800 1,397,250
Kellwood Co. 78,300 2,123,887
La-Z-Boy Chair Co. 150,800 3,468,400
Liz Claiborne, Inc. 75,900 2,770,350
Reebok International* 145,300 2,706,213
14,286,925
Health Care (2.0%)
Acuson Corp.* 68,000 $ 1,168,750
McKesson HBOC, Inc. 9,700 311,613
Merck & Co. 7,400 547,600
2,027,963
Information Processing &
Telecommunications (6.6%)
A T & T Corp. 15,900 887,419
Autodesk, Inc. 39,400 1,164,763
International Business
Machines Corp. 9,200 1,189,100
Lucent Technologies, Inc. 15,221 1,026,466
Sun Microsystems, Inc.* 32,100 2,210,887
Telxon Corp. 23,100 183,356
6,661,991
Merchandising (6.3%)
Gymboree Corp.* 153,400 1,610,700
Lands' End, Inc.* 37,600 1,823,600
Longs Drug Stores Corp. 83,100 2,872,144
6,306,444
Metals & Mining (12.0%)
AK Steel Holding Corp. 110,600 2,488,500
ALCOA, Inc. 61,700 3,817,688
Cleveland-Cliffs, Inc. 51,900 1,680,262
Oregon Steel Mills, Inc. 114,800 1,528,275
Phelps Dodge Corp. 41,500 2,570,406
12,085,131
Oil & Oil Services (8.0%)
Royal Dutch Petroleum 42,700 2,572,675
Tidewater, Inc. 84,200 2,568,100
Valero Energy Corp. 133,900 2,870,481
8,011,256
Transportation (4.2%)
Alexander & Baldwin, Inc. 91,300 2,031,425
Norfolk Southern Corp. 72,800 2,193,100
4,224,525
Miscellaneous (7.5%)
Kelly Services, Inc. 77,100 2,476,838
Michael Foods, Inc. 81,700 1,919,950
P G & E Corp. 67,694 2,200,055
Park Electrochemical Corp. 30,300 871,125
7,467,968
Total common stock (cost: $73,590,123) 93,095,815
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
EQUITY PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C>
Market
Description Shares Value
Money Market Mutual Funds (2.1%)
Federated Investors Prime Obligation 2,126,287 $ 2,126,287
Total money market mutual funds (cost: $2,126,287) 2,126,287
Cash and Cash Equivalents (5.1%)
BONY Cash Reserve 5,095,099
Total cash and cash equivalent (cost: $5,095,099) 5,095,099
Total Investments (cost: $80,811,509) $100,317,201
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Short-term Notes (97.1%)
U.S. Government & Agency Obligations (50.3%)
Federal Home Loan Bank Discount Notes 4.735% 08/02/99 $ 5,200,000 $ 5,178,367
Federal Home Loan Bank Discount Notes 4.785% 08/17/99 4,000,000 3,975,299
Federal Home Loan Mortgage Corp. Discount Notes 4.719% 07/12/99 5,500,000 5,492,152
Federal Home Loan Mortgage Corp. Discount Notes 4.710% 08/23/99 3,200,000 3,177,340
Federal National Mortgage Commercial Paper 4.743% 07/07/99 9,000,000 8,992,965
Federal National Mortgage Association Discount Notes 4.738% 07/19/99 4,000,000 3,990,620
Federal National Mortgage Association Discount Notes 4.752% 08/06/99 9,600,000 9,554,523
Federal National Mortgage Association Discount Notes 4.785% 08/13/99 4,100,000 4,076,836
Federal National Mortgage Association Discount Notes 4.959% 09/10/99 2,600,000 2,574,874
Federal National Mortgage Association Discount Notes 4.998% 09/10/99 2,700,000 2,673,695
49,686,671
Corporate Obligations (46.8%)
Automotive (8.1%)
Ford Motor Credit Corp. 4.847% 07/09/99 2,200,000 2,200,000
Ford Motor Credit Corp. 5.103% 09/17/99 1,900,000 1,900,000
General Motors Acceptance Corp. 4.858% 07/13/99 1,700,000 1,700,000
General Motors Acceptance Corp.. 4.828% 07/20/99 1,000,000 1,000,000
General Motors Acceptance Corp. 5.032% 09/08/99 1,200,000 1,200,000
8,000,000
Business Finance (8.6%)
CIT Group Holdings 5.042% 09/15/99 2,100,000 2,100,000
CIT Group Holdings 4.857% 07/30/99 1,900,000 1,900,000
General Electric Capital Corp. 4.848% 07/19/99 2,500,000 2,500,000
General Electric Capital Corp. 4.858% 07/29/99 2,000,000 2,000,000
8,500,000
Consumer Finance (17.6%)
American Express Credit Corp. 4.877% 07/02/99 1,500,000 1,500,000
American Express Credit Corp. 4.879% 08/17/99 1,000,000 1,000,000
American Express Credit Corp. 4.879% 08/19/99 1,800,000 1,800,000
American General Finance 4.828% 07/26/99 3,100,000 3,100,000
American General Finance 4.858% 08/04/99 1,400,000 1,400,000
Associates Corporation of North America 4.838% 07/13/99 1,700,000 1,700,000
Associates Corporation of North America 5.165% 09/22/99 1,400,000 1,400,000
Associates First Capital Corp. 4.858% 08/03/99 1,500,000 1,500,000
Household Finance Corp. 4.817% 07/13/99 1,800,000 1,800,000
Household Finance Corp. 4.847% 07/26/99 2,200,000 2,200,000
17,400,000
Information Technology (3.4%)
International Business Machines Credit Corp. 4.807% 07/19/99 3,400,000 3,400,000
3,400,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Short-term Notes (97.1%) (continued)
Insurance (4.4%)
Prudential Financial Corp. 4.848% 07/12/99 3,100,000 $ 3,100,000
Prudential Financial Corp. 5.125% 09/21/99 1,200,000 1,200,000
4,300,000
Agricultural & Constructional Machinery (4.7%)
John Deere Capital Corp. 4.838% 08/05/99 3,200,000 3,200,000
John Deere Capital Corp. 4.848% 08/10/99 1,400,000 1,400,000
4,600,000
Total short-term notes (cost: $95,886,671) 95,886,671
Shares
Money Market Mutual Funds (2.7%)
Dreyfus Masternote Account 1,392,040 $ 1,392,040
Federated Investors Prime Obligation 1,235,531 1,235,531
Total money market mutual funds (cost: $2,627,571) 2,627,571
Cash and Cash Equivalent (0.2%)
BONY Cash Reserve 232,942
Total cash and cash equivalents (cost: $232,942) 232,942
Total Investments (cost: $98,747,184) $ 98,747,184
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-term Notes and Bonds (96.7%)
U.S. Government & Agency Obligations (28.5%)
Federal National Mortgage Association 5.750% 04/15/03 $ 1,000,000 $ 988,910
Federal National Mortgage Association 5.625% 05/14/04 2,100,000 2,035,026
Federal Home Loan Bank 8.375% 10/25/99 1,300,000 1,311,778
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 1,353,339 1,297,513
U.S. Treasury Bonds 7.250% 05/15/16 2,575,000 2,832,088
U.S. Treasury Bonds 6.500% 11/15/26 600,000 623,346
U.S. Treasury Bonds 8.000% 11/15/21 1,800,000 2,170,404
U.S. Treasury Notes 5.750% 08/15/03 700,000 700,434
U.S. Treasury Notes 6.250% 04/30/01 475,000 481,014
U.S. Treasury Notes 6.250% 02/28/02 2,400,000 2,436,000
14,876,513
Mortgage-Backed and Asset-Backed Securities (37.7%)
American Southwest Financial Corp. CMO 8.900% 03/01/18 124,948 126,354
California Infrastructure SCE-1 6.220% 03/25/04 400,000 399,000
Federal Home Loan Mortgage Corp. Gold Pool #C17374 6.000% 11/10/28 499,298 469,630
Federal Home Loan Mortgage Corp. Gold Pool #C17991 6.000% 11/01/28 198,801 186,988
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 802,212 754,545
Federal Home Loan Mortgage Corp. Gold Pool #E00543 6.000% 04/01/13 219,434 212,261
Federal Home Loan Mortgage Corp. Gold Pool #E71048 6.000% 07/01/13 35,829 34,658
Federal Home Loan Mortgage Corp. Gold Pool #E72468 5.500% 10/01/13 686,508 650,549
Federal Home Loan Mortgage Corp. Gold Pool #G10817 6.000% 06/01/13 647,796 626,619
Federal Home Loan Mortgage Corp. Pool #C14364 6.500% 09/01/28 700,309 676,261
Federal Home Loan Mortgage Corp. Pool #C14872 6.500% 09/01/28 170,791 164,926
Federal Home Loan Mortgage Corp. Pool #C21571 6.000% 02/01/29 402,086 378,194
Federal Home Loan Mortgage Corp. Pool #c21896 6.000% 02/01/29 1,005,440 945,697
Federal Home Loan Mortgage Corp. Pool #E00565 6.000% 08/01/13 478,733 463,084
Federal Home Loan Mortgage Corp. Pool #E72105 6.000% 09/01/13 464,376 449,196
Federal Home Loan Mortgage Corp. To Be Allocated 6.500% 01/15/14 1,200,000 1,184,016
Federal Home Loan Mortgage Corp.
Series 2075 Class PE CMO 6.500% 04/15/21 400,000 399,248
Federal National Mortgage Association CMO 7.500% 12/25/09 600,000 611,808
GNMA Pool #193704 6.000% 06/15/14 650,000 630,169
GNMA Pool #399083 7.000% 01/15/27 2,362,835 2,333,111
GNMA Pool #415539 8.000% 07/15/27 189,507 195,058
GNMA Pool #416402 7.500% 07/15/26 18,880 19,080
GNMA Pool #424739 7.500% 05/15/26 440,816 445,480
GNMA Pool #425039 7.500% 05/15/26 26,374 26,653
GNMA Pool #436282 6.500% 03/15/28 316,099 304,220
GNMA Pool #443216 8.000% 07/15/27 441,031 453,949
GNMA Pool #452827 7.500% 02/15/28 339,574 343,486
GNMA Pool #456941 6.500% 06/15/28 531,078 511,120
GNMA Pool #462142 7.000% 05/15/26 194,007 191,568
GNMA Pool #462829 6.500% 07/15/28 399,871 384,844
GNMA Pool #463145 6.500% 04/15/28 997,887 960,387
GNMA Pool #465364 6.500% 08/15/28 480,488 462,431
GNMA Pool #468723 6.500% 02/15/28 362,193 348,582
GNMA Pool #474638 6.500% 08/15/28 385,105 370,633
</TABLE>
(continued on next page)
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-term Notes and Bonds (96.7%) (continued)
Mortgage-Backed and Asset-Backed Securities (37.7%) (continued)
GNMA Pool #480714 6.000% 11/15/28 $ 315,079 $ 294,564
GNMA Pool #482825 6.000% 11/15/28 548,892 513,154
GNMA Pool #487131 6.000% 04/15/29 997,344 932,407
GNMA Pool #487494 6.000% 05/15/14 999,999 969,489
GNMA Pool #492362 6.000% 10/15/28 262,431 245,343
19,668,762
Corporate Obligations (30.5%)
A T&T Corp. 6.500% 03/15/29 700,000 631,708
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 400,000 373,876
Associates Corporation of North America Notes 5.600% 01/15/01 1,600,000 1,588,512
Beckman Coulter 7.450% 03/04/08 500,000 469,345
Commercial Credit Company 5.500% 02/15/01 1,000,000 990,670
Conoco, Inc. 6.350% 04/15/09 700,000 671,866
Continental Airlines 6.545% 02/02/19 600,000 565,704
El Paso Natural Gas Company Notes 7.750% 01/15/02 200,000 205,262
Equistar Chemicals LP 8.750% 02/15/09 600,000 607,400
Ford Motor Credit Corp. Notes 7.750% 11/15/02 850,000 882,037
General Motors Acceptance Corporation Notes 5.850% 0406/00 500,000 499,445
GTE Corp. Debentures 6.940% 04/15/28 500,000 473,295
Hydro-Quebec Debentures 8.050% 07/07/24 400,000 433,492
ICI Wilmington Notes 6.750% 09/15/02 600,000 602,538
Key Bank NA Notes 6.500% 10/15/27 300,000 285,147
Korean Development Bank Notes 7.375% 09/17/04 500,000 491,598
Lehman Brothers Holdings 6.500% 10/01/02 1,000,000 986,660
Petroliam Nasional Berhad Notes 7.125% 10/18/06 500,000 455,551
PNC Funding Corp. Notes 6.875% 03/01/03 400,000 400,572
Public Service New Mexico 7.100% 08/01/05 350,000 347,620
Raytheon Co. Notes 6.150% 11/01/08 800,000 755,272
Service Corp. Notes 6.750% 06/01/01 900,000 896,634
Signet Bank Notes 7.800% 09/15/06 400,000 418,104
Simon Property Group, Inc. 6.750% 02/09/04 500,000 487,080
Sprint Capital Corp. 6.875% 11/15/28 700,000 634,634
Texas-New Mexico Power 6.250% 01/15/09 500,000 457,680
Union Pacific Resources Debentures 7.050% 05/15/18 300,000 270,213
15,881,915
Total long-term notes and bonds (cost: $51,583,488) 50,427,190
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
BOND PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C>
Market
Description Shares Value
Money Market Mutual Funds (1.0%)
Federated Investors Prime Obligation 514,206 $ 514,206
Total money market mutual funds (cost: $514,206) 514,206
Cash and Cash Equivalents (2.3%)
BONY Cash Reserve 1,194,873
Total cash and cash equivalent (cost: $1,194,873)
1,194,873
Total Investments (cost: $53,292,567) $ 52,136,269
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (55.4%)
Aerospace (2.7%)
Boeing Co. 24,100 $ 1,064,919
Precision Castparts Corp. 22,900 973,250
2,038,169
Automotive & Auto Parts (5.1%)
Bandag, Inc. 28,500 988,594
Carlisle Companies, Inc. 19,600 943,250
Ford Motor Co. 22,900 1,292,419
TBC Corp.* 96,500 681,531
3,905,794
Banks & Financial (6.3%)
American Express Co. 3,300 429,412
Associates First Capital
Corp. 12,440 551,248
Bank One Corp. 16,385 975,932
Citigroup, Inc. 23,414 1,112,141
Ohio Casualty Corp. 23,400 845,325
Washington Mutual, Inc. 26,205 927,002
4,841,060
Broadcasting & Publishing (1.5%)
Chris-Craft Industries, Inc.* 14,486 682,653
Meredith Corp. 11,300 391,262
Moore Corp., Ltd 13,200 110,550
1,184,465
Electrical Equipment &
Electronics (1.4%)
Baldor Electric Co. 54,800 1,089,150
1,089,150
Entertainment & Leisure (2.1%)
CPI Corp. 11,200 369,600
Fleetwood Enterprises, Inc. 42,900 1,134,169
1,503,769
Furniture & Apparel (8.3%)
Hillenbrand Industries, Inc. 19,700 852,024
Kellwood Co. 35,800 971,075
Kimball International 33,900 572,063
La-Z-Boy Chair Co. 66,200 1,522,600
Liz Claiborne, Inc. 34,600 1,262,900
Reebok International* 65,200 1,214,350
6,395,012
Health Care (1.3%)
Acuson Corp.* 34,500 $ 592,969
McKesson HBOC, Inc. 5,000 160,625
Merck & Co. 3,800 281,200
1,034,794
Information Processing &
Telecommunications (4.1%)
A T & T Corp. 7,950 443,709
Autodesk, Inc. 16,800 496,650
International Business
Machines Corp. 4,600 594,550
Lucent Technologies, Inc. 7,383 497,891
Sun Microsystems, Inc.* 14,800 1,019,350
Telxon Corp. 11,300 89,694
3,141,844
Merchandising (3.8%)
Gymboree Corp.* 72,000 758,100
Lands' End, Inc.* 18,300 887,550
Longs Drug Stores Corp. 37,200 1,285,725
2,931,375
Metals & Mining (7.3%)
AK Steel Holding Corp. 51,600 1,161,000
ALCOA, Inc. 27,600 1,707,750
Cleveland-Cliffs, Inc. 24,500 793,188
Oregon Steel Mills, Inc. 59,400 790,762
Phelps Dodge Corp. 19,200 1,189,200
5,641,900
Oil & Oil Services (4.7%)
Royal Dutch Petroleum Co. 19,300 1,160,825
Tidewater, Inc. 38,700 1,180,350
Valero Energy Corp. 59,800 1,281,963
3,625,138
Transportation (2.4%)
Alexander & Baldwin, Inc. 44,000 979,000
Norfolk Southern Corp. 28,000 843,500
1,822,500
Miscellaneous (4.4%)
Kelly Services, Inc. 35,000 1,124,375
Michael Foods, Inc. 37,600 883,600
P G & E Corp. 30,854 986,505
Park Electrochemical Corp. 13,900 399,625
3,394,105
Total common stock (cost: $33,115,031) 42,549,075
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (41.8%)
U.S. Government and Agency Obligations (14.8%)
Federal National Mortgage Association Bonds 5.625% 05/14/04 $ 1,650,000 $ 1,598,949
Federal National Mortgage Association Bonds 8.350% 11/10/99 500,000 505,080
Federal Home Loan Bank 8.375% 10/25/99 900,000 908,154
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 624,595 598,830
U.S. Treasury Bonds 7.250% 05/15/16 1,125,000 1,237,320
U.S. Treasury Bonds 6.500% 11/15/26 800,000 831,128
U.S. Treasury Bonds 8.000% 11/15/21 1,350,000 1,627,803
U.S. Treasury Notes 5.750% 08/15/03 575,000 575,357
U.S. Treasury Notes 6.250% 04/30/01 1,900,000 1,924,054
U.S. Treasury Notes 6.250% 02/28/02 1,550,000 1,573,250
11,379,925
Mortgage-Backed and Asset-Backed Securities (14.9%)
California Infrastructure SCE-1 6.220% 03/25/04 300,000 299,250
Federal Home Loan Mortgage Corp. Gold Pool #C17374 6.000% 11/01/28 499,297 469,629
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 752,074 707,386
Federal Home Loan Mortgage Corp. Gold Pool #C22301 6.000% 02/01/29 383,030 360,271
Federal Home Loan Mortgage Corp. Gold Pool #E00543 6.000% 04/01/13 450,808 436,071
Federal Home Loan Mortgage Corp. Pool #C14872 6.500% 09/01/28 639,292 617,339
Federal Home Loan Mortgage Corp. To Be Allocated 6.500% 01/15/14 750,000 740,010
Federal Home Loan Mortgage Corp.
Series 2075 Class PE CMO 6.500% 04/15/21 300,000 299,436
GNMA Pool #399069 7.000% 01/15/27 1,617,640 1,597,290
GNMA Pool #407966 6.500% 02/15/28 751,703 723,454
GNMA Pool #416741 7.000% 05/15/26 353,134 348,695
GNMA Pool #422407 6.500% 01/15/26 167,152 161,288
GNMA Pool #424578 6.500% 04/15/26 449,643 433,869
GNMA Pool #425983 6.500% 03/15/26 240,815 232,367
GNMA Pool #431962 6.500% 05/15/26 301,681 291,098
GNMA Pool #436741 7.500% 01/15/27 393,010 397,168
GNMA Pool #443216 8.000% 07/15/27 230,702 237,460
GNMA Pool #443577 6.500% 07/15/28 300,003 288,729
GNMA Pool #451312 8.000% 07/15/27 132,561 136,443
GNMA Pool #465963 6.500% 03/15/28 110,787 106,624
GNMA Pool #468340 6.500% 08/15/28 474,484 456,653
GNMA Pool #471262 6.500% 05/15/28 976,808 940,099
GNMA Pool #474638 6.500% 08/15/28 105,555 101,588
GNMA Pool #487181 6.000% 04/15/29 498,672 466,203
GNMA Pool #499264 6.000% 05/15/14 600,000 581,694
11,430,114
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds(41.8%) (continued)
Corporate Obligations (12.1%)
A T & T Corp. 6.500% 03/15/29 $ 300,000 $ 270,732
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 450,000 420,611
Associates Corporation of North America Notes 5.600% 01/15/01 400,000 397,128
Beckman Coulter 7.450% 03/04/08 150,000 140,804
Commercial Credit Company 5.550% 02/15/01 700,000 693,469
Conoco, Inc. 6.350% 04/15/09 300,000 287,943
Continental Airlines 6.545% 02/02/19 200,000 188,568
El Paso Natural Gas Company Notes 7.750% 01/15/02 100,000 102,631
Equistar Chemicals LP 8.750% 02/15/09 200,000 202,467
Ford Motor Credit Corp. Notes 7.750% 11/15/02 500,000 518,845
General Motors Acceptance Corp. 5.850% 04/06/00 750,000 749,167
GTE Corp. Debentures 6.940% 04/15/28 350,000 331,306
Hydro-Quebec Debenture 8.050% 07/07/24 250,000 270,933
ICI Wilmington Notes 6.750% 09/15/02 400,000 401,692
Key Bank NA Notes 6.500% 10/15/27 250,000 237,623
Korean Development Bank Notes 7.375% 09/17/04 400,000 393,278
Lehman Brothers Holdings 6.500% 10/01/02 350,000 345,331
Petroliam Nasional Berhad Notes 7.125% 10/18/06 500,000 455,551
PNC Funding Corp. Notes 6.875% 03/01/03 300,000 300,429
Public Service New Mexico 7.100% 08/01/05 200,000 198,640
Raytheon Co. Notes 6.150% 11/01/08 650,000 613,658
Service Company International Notes 6.750% 06/01/01 700,000 697,382
Signet Bank Notes 7.800% 09/15/06 300,000 313,578
Simon Property Group, Inc. 6.750% 02/09/04 150,000 146,124
Sprint Capital Corp. 6.875% 11/15/28 300,000 271,986
Texas-New Mexico Power 6.250% 01/15/09 150,000 137,304
Union Pacific Resources Debentures 7.050% 05/15/18 250,000 225,177
9,312,357
Total long-term notes and bonds (cost: $32,780,213) 32,122,396
Shares
Money Market Mutual Funds (0.4%)
Federated Investors Prime Obligation 323,272 323,272
Total money market mutual funds (cost: $323,272) 323,272
Cash and Cash Equivalents (2.4%)
BONY Cash Reserve 1,843,540
Total cash and cash equivalent (cost: $1,843,540) 1,843,540
Total Investments (cost: $68,062,056) $ 76,838,283
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
TACTICAL ASSET ALLOCATION PORTFOLIO
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (52.9%)
Airlines (1.1%)
Comair Holdings, Inc. 3,375 $ 70,242
70,242
Automotive (4.4%)
Daimler Chrysler Corp.* 1,247 110,827
Ford Motor Co. 1,200 67,725
Paccar, Inc. 2,000 106,750
285,302
Banking (1.8%)
Bank One Corp. 2,000 119,125
119,125
Building Materials (0.9%)
Martin Marietta
Materials, Inc. 1,000 59,000
59,000
Capital Goods (3.1%)
Caterpillar, Inc. 2,000 120,000
Trinity Industries 2,500 83,750
203,750
Chemicals (1.2%)
Potash Corporation
of Saskatchewan 1,500 77,625
77,625
Electronics (1.6%)
Raytheon Co. 1,500 105,562
105,562
Energy (7.0%)
Diamond Offshore Drilling 4,000 113,500
R & B Falcon Corp.* 7,000 65,625
Texaco, Inc. 2,000 125,000
Tidewater, Inc. 5,000 152,500
456,625
Financial Services (3.7%)
AMBAC Financial Group, Inc. 2,000 114,250
Chase Manhattan Corp. 1,500 129,937
244,187
Government Sponsored
Enterprises (1.0%)
Fannie Mae 1,000 68,375
68,375
Housing (1.1%)
Clayton Homes, Inc. 6,000 68,625
68,625
Insurance (6.1%)
AFLAC, Inc. 3,000 $ 143,625
Allstate Corp. 3,000 107,625
American National Insurance 800 57,000
Frontier Insurance Group, Inc. 6,000 92,250
400,500
Mortgage Services (3.7%)
Countrywide Credit
Industries, Inc. 2,000 85,500
MGIC Investment Corp. 2,000 93,750
PMI Group, Inc. 1,000 62,812
242,062
Real Estate (2.4%)
Duke Realty Investments, Inc. 3,000 67,688
Simon Property Group 1,000 25,375
Storage USA 2,000 63,750
156,813
Restaurants (0.8%)
Tricon Global Restaurants Inc.*1,000 54,125
54,125
Technology (2.1%)
ECI Telecommunications
Limited Designs 3,000 99,563
Miami Computer Supply Corp.* 2,000 37,750
137,313
Telecommunications (6.6%)
A T&T Corp. 2,000 111,625
Alltel Corp. 2,960 211,640
Sprint Corp. (PCS Group)* 400 22,850
Sprint Corp. (Fon Group) 1,600 84,500
430,615
Tobacco (1.3%)
Philip Morris Companies, Inc. 2,000 88,413
88,413
Miscellaneous (3.0%)
Convergys Corp. 5,000 96,250
Minnesota Mining &
Manufacturing Co. 1,000 86,938
183,188
Total common stock (cost: $2,850,048) 3,451,447
Preferred Stock (1.4%)
News Corp. LTD 3,000 94,688
Total preferred stock (cost: $62,520) 94,688
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
TACTICAL ASSET ALLOCATION PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes & Bonds (38.8%)
U.S. Government and Agency Obligations (23.6%)
Federal National Mortgage Association Notes 5.250% 01/15/03 $ 200,000 $ 193,688
Federal National Mortgage Association Notes 6.970% 09/04/07 150,000 149,979
Federal Home Loan Mortgage Company 5.000% 01/15/04 150,000 143,156
Federal Home Loan Bank 6.100% 04/29/04 150,000 147,304
Federal Home Loan Bank 5.620% 02/25/04 150,000 146,367
US Treasury Notes 5.500% 04/15/00 100,000 100,172
US Treasury Notes 5.875% 02/15/04 150,000 150,962
US Treasury Notes 6.500% 10/15/06 150,000 154,875
US Treasury Bonds 6.125% 08/15/07 200,000 202,156
Tennesee Valley Authority 6.375% 06/15/05 150,000 149,812
1,538,471
Corporate Obligations (15.2%)
Commercial Credit Co. 6.500% 08/01/04 150,000 149,294
Cox Radio, Inc. 6.375% 05/15/05 100,000 100,313
E.I. Dupont De Nemours 6.500% 09/01/02 150,000 151,639
Household Finance Co. 6.450% 03/15/01 150,000 150,797
Merrill Lynch & Co. 6.020% 05/11/01 150,000 149,625
PHH Corp. 7.020% 11/09/01 150,000 152,385
Washington Water Power 5.990% 12/10/07 150,000 139,803
993,856
Total long-term notes and bonds (cost: $2,566,224) 2,532,327
Short-Term Notes (3.1%)
MidAmerican Energy 4.980% 07/01/99 200,000 200,000
Total short-term notes (cost: $200,000) 200,000
Cash and Cash Equivalents (3.8%)
BONY Cash Reserve 248,626
Total cash and cash equivalents (cost: $248,626) 248,626
Total Investments (cost: $5,927,418) $ 6,527,088
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (78.4%)
Advertising (0.3%)
Omnicon Group, Inc. 200 $ 16,000
WPP Group PLC
Sponsored ADR 100 8,575
24,575
Aerospace & Air Transport (1.8%)
Boeing Co. 1,300 57,444
Precision Castparts Corp. 1,600 68,000
U.S. Airways Group, Inc. 300 13,069
138,513
Automotive & Auto Parts (3.9%)
Bandag, Inc. 1,800 62,438
Carlisle Companies, Inc. 1,300 62,563
Ford Motor Co. 1,500 84,655
Honda Motor Co. Ltd.
Sponsored ADR 167 14,487
TBC Corp.* 6,600 46,613
Toyota Motor Corp.
Sponsored ADR 134 8,576
Valeo Sponsored ADR 100 8,250
Volkswagon AG
Sponsored ADR 400 5,160
292,742
Banks (2.2%)
Abbey National PLC 379 14,228
Allied Irish Bank PLC
Sponsored ADR 468 12,753
Argentaria Caja Postal Banco
Sponsored ADR 256 11,776
Bank One Corp. 1,300 77,431
Bank of Tokyo-Mitsubshi Ltd.
Sponsored ADR 665 9,684
Barclays PLC Sponsored ADR 82 9,799
Development Bank of Singapore
Ltd. Sponsored ADR 35 1,710
Fortis (NL) Sponsored ADR 100 3,088
National Australia Bank Ltd.
Sponsored ADR 44 3,696
National Westminster
Bank Sponsored ADR 35 4,548
St. George Bank Ltd.
Sponsored ADR 167 2,318
UBS AGADR 800 11,936
162,967
Broadcasting & Publishing (2.2%)
Cablevision Systems Corp.,
Class "A" 200 $ 14,000
CBS Corp. 800 34,750
Chris-Craft Industries, Inc.* 927 43,684
Gannett Co., Inc. 600 42,825
Meredith Corp. 700 24,238
Moore Corp., Ltd. 1,000 8,375
167,872
Building (1.2%)
Cementos De Mexico
Sponsored ADR 7 69
CEMEX SA Sponsored
ADR Class "B" 500 4,760
Fleetwood Enterprises, Inc. 2,900 76,668
Hanson PLC Sponsored ADR 100 4,438
Sekisui House Ltd.
Unsponsored ADR 71 7,661
93,596
Business & Public Services (1.3%)
Kelly Services, Inc. Class "A" 2,300 73,887
Paychex, Inc. 450 14,344
Waste Management, Inc. 200 10,750
98,981
Chemicals (0.3%)
BASF AG ADR 200 8,786
Praxair, Inc. 300 14,681
23,467
Computer Equipment &
Services (3.6%)
Canon, Inc. Sponsored ADR 666 19,397
Cisco Systems, Inc. 1,700 109,331
Equant N.V. ADR 151 14,213
Lucent Technologies, Inc. 1,036 69,865
Orange PLC ADR 100 7,550
Qwest Communications, Inc. 300 9,919
SAP AG Sponsored ADR 200 6,925
TDK Corp. ADR 87 8,009
Telxon Corp. 700 5,556
Vodafone Airtouch PLC
Sponsored ADR 100 19,700
270,465
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (78.4%) (continued)
Computer Hardware (3.3%)
Compaq Computer Corp. 700 $ 16,581
Dell Computer Corp. 1,700 62,900
International Business
Machines Corp. 800 103,400
Sun Microsystem, Inc.* 1,000 68,875
251,756
Computer Software &
Services (4.1%)
American Online, Inc. 100 11,050
At Home Corp. 300 16,181
Autodesk, Inc. 1,200 35,475
BMC Software, Inc. 300 16,200
Microsoft Corp. 1,200 108,225
Sterling Software, Inc. 500 13,344
Veritas Software Corp. 200 18,988
Yahoo!, Inc. 500 86,125
305,588
Diversified (0.1%)
Keppel Ltd. Sponsored ADR 140 953
Vivendi Sponsored ADR 300 4,860
5,813
Electrical Equipment &
Electronics (3.7%)
Dixons Group PLC ADR 100 5,603
Electrolux AB ADR Class "B" 200 8,400
Honeywell, Inc. 100 11,588
Intel Corp. 1,800 107,099
Koninklijke Philips Electronics
NV Sponsored ADR 52 5,246
Matsushita Electric
Industrial Co., Ltd. ADR 39 7,734
Minebea Company
Ltd. Sponsored ADR 400 8,920
Mitsui Co. Ltd. Sponsored ADR 57 8,151
Nokia Corporation
Sponsored ADR 160 14,650
Park Electrochemical Corp. 900 25,875
Sony Corp. ADR 141 15,563
ST Microelectronics N.V. ADR 200 13,875
Texas Instruments, Inc. 300 43,500
276,204
Entertainment & Leisure (0.2%)
Accor SA Sponsored ADR 200 5,022
Nintendo Company Ltd. ADR 600 10,536
15,558
Financial Services (3.6%)
Allied Zurich PLC
Sponsored ADR 565 $ 14,334
American Express Co. 300 39,038
Amvescap PLC Sponsored ADR 66 3,069
Anglo American PLC ADR 98 4,675
Associates First Capital Corp. 876 38,818
Citigroup, Inc. 1,650 78,374
Countrywide Credit
Industries, Inc. 300 12,825
Federal Home Loan
Mortgage Corp. 300 17,400
Federal National Mortgage
Association 400 27,350
ING Groep N.V.
Sponsored ADR 94 5,170
Nomura Securities Ltd. ADR 81 9,483
Orix Corp. Sponsored ADR 200 9,300
Istituto Bancario
San Paolo SpA ADR 400 11,000
270,836
Food, Beverage, Tobacco (2.1%)
Coca-Cola Co. 500 31,250
Compass Group PLC
Sponsored ADR 948 9,395
LVMH Moet Hennesey
Sponsored ADR 110 6,573
Michael Foods, Inc. 2,800 65,800
Pepsico, Inc. 600 23,212
Philip Morris Companies, Inc. 600 24,112
160,342
Furniture & Apparel (5.7%)
Authentic Fitness Corp. 400 7,000
Hillenbrand Industries, Inc. 1,300 56,224
Kellwood Co. 2,100 56,963
La-Z-Boy, Inc. 4,400 101,200
Liz Claiborne, Inc. 2,400 87,600
Kimball International, Inc.
Class "B" 2,200 37,125
Reebok International* 4,500 83,813
429,925
Health Care (7.0%)
Acuson Corp.* 2,300 39,531
Amgen, Inc. 900 54,787
Bristol-Myers Squibb Co. 1,400 98,612
Glaxo Wellcome PLC
Sponsored ADR 200 11,325
(continued on next page)
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (78.4%) (continued)
Health Care (7.0%) (continued)
Johnson & Johnson 500 $ 49,000
McKesson HBOC, Inc. 500 16,063
Merck & Co. 1,400 103,600
Novartis AG ADR 58 4,235
Nycomed Amersham PLC
Sponsored ADR 100 3,563
Pfizer, Inc. 200 21,950
Roche Holding Ltd. ADR 112 11,512
Schering-Plough Corp. 900 47,700
Smithkline Beechman PLC ADR 192 12,684
Warner-Lambert Co. 800 55,500
530,062
Hospital Management (0.6%)
Pacificare Health Systems, Inc. 200 14,388
Wellpoint Health Networks, Inc. 400 33,950
48,338
Household Products (1.0%)
Colgate-Palmolive Co. 100 9,875
Proctor & Gamble Co. 700 62,475
Unilever PLC Sponsored ADR 90 3,353
75,703
Insurance (2.6%)
Aegon N.V. Sponsored ADR 54 3,996
Aetna, Inc. 600 53,662
AXA-UAP Sponsored ADR 152 9,472
Legal & General Group PLC
Sponsored ADR 300 3,816
Ohio Casualty Corp. 1,600 57,800
Washington Mutual, Inc. 1,900 67,213
195,959
Machinery (2.0%)
Applied Materials, Inc. 800 59,100
Baldor Electric Co. 4,000 79,500
Mannesmann AG
Sponsored ADR 81 12,112
150,712
Manufacturing (2.6%)
Corning, Inc. 600 42,075
General Electric Co. 1,200 135,600
General Electric Co. PLC ADR 600 6,114
Invensys PLC Sponsored ADR 983 9,299
Southcorp Ltd. Sponsored ADR 100 2,019
195,107
Merchandising -
Food & Drug (2.1%)
Albertson's, Inc. 400 $ 20,625
ITO Yokad Ltd. Sponsored ADR 100 6,788
Koninklijke Ahold N.V.
Sponsored ADR 100 3,462
Kroger Co. 800 22,350
Longs Drug Stores, Inc. 2,400 82,950
Safeway, Inc. 200 9,900
Whole Foods Market, Inc. 300 14,419
160,494
Metals & Mining (5.3%)
AK Steel Holding Corp. 3,600 81,000
ALCOA, Inc. 1,900 117,562
Broken Hill Proprietary
Company Ltd. ADR 219 5,188
Cleveland-Cliffs, Inc. 1,700 55,038
Oregon Steel Mills, Inc. 4,300 57,244
Phelps Dodge Corp. 1,300 80,518
396,550
Oil & Oil Services (4.1%)
BP Amoco PLC
Sponsored ADR 165 17,903
Royal Dutch Petroleum Co. 1,400 84,350
Tidewater, Inc. 2,600 79,300
Total Fina SA Sponsored ADR 200 12,888
Transocean offshore, Inc. 900 23,625
Valero Energy Corp. 4,200 90,037
308,103
Real Estate Development (0.4%)
City Developments Ltd.
Sponsored ADR 227 1,453
Starwood Financial Trust
Class "A" 500 31,000
32,453
Retail (5.0%)
Cifra SA ADR 200 3,742
Circuit City Stores -
Circuit City Group 500 46,500
Costco Companies, Inc. 300 24,019
Dayton-Hudson Corp. 700 45,500
Gymboree Corp.* 5,700 59,850
Home Depot, Inc. 200 12,888
Kingfisher PLC Sponsored ADR 345 7,938
Lands' End, Inc.* 1,500 72,750
Sears, Roebuck & Company 300 13,369
(continued on next page)
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (78.4%) (continued)
Retail (5.0%) (continued)
Staples, Inc. 1,100 $ 34,031
Wal-Mart Stores, Inc. 1,100 53,075
373,662
Telecommunications (2.9%)
A T & T Corp. 1,450 80,927
Bell Atlantic Corp. 400 26,150
British Telecommunications
PLC Sponsored ADR 64 10,960
Cable & Wireless
Communications PLC ADR 88 4,268
Ericsson LM Sponsored ADR 200 6,588
MCI Worldcom, Inc. 400 34,425
Nippon Telegraph & Telephone
Sponsored ADR 295 18,474
Singapore Telecom ADR 46 789
SK Telecom Co. Ltd. ADR 200 3,400
Swisscom AG Sponsored ADR 100 3,838
Telebras Sponsored ADR 100 9,019
Telecom Italia SpA
Sponsored ADR 100 10,519
Telefonica SA ADR 0.02 3
Telefonos De Mexico
ADR Class "A' 100 8,081
VNU N.V. Sponsored ADR 96 3,836
221,277
Transportation (1.8%)
Alexander & Baldwin, Inc. 3,000 $ 66,750
Norfolk Southern Corp. 1,900 57,237
Peninsular & Oriental
Sponsored ADR 290 8,706
132,693
Utilities (1.1%)
Korea Electric Power Corp.
Sponsored ADR 600 12,300
PG&E Corp. 2,100 68,250
80,550
Miscellaneous (0.3%)
Fuji Photo Film Ltd. ADR 370 14,060
UPM-Kymmene Corp.
Sponsored ADR 200 6,288
20,348
Total common stock (cost: $5,358,537) 5,911,211
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
AGGRESSIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Market
Description Shares Value
Mutual Funds (3.9%)
Federated High Yield Fund 33,985 $ 297,371
Total mutual funds (cost: $325,000) 297,371
Interest Maturity Principal
Rate Date Amount
Long-Term Notes and Bonds (15.1%)
U.S. Government & Agency Obligations (4.5%)
U.S. Treasury Bonds 6.500% 11/15/26 $ 50,000 51,945
U.S. Treasury Bonds 8.000% 11/15/21 25,000 30,145
U.S. Treasury Notes 6.250% 02/28/02 250,000 253,750
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 52,185 50,032
385,172
Mortgage Backed Securities (6.1%)
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 100,277 94,318
FNMA Pool 5.625% 05/14/04 100,000 96,906
GNMA Pool #482825 6.000% 11/15/28 99,799 93,301
GNMA Pool #454007 6.500% 04/15/28 97,714 94,042
GNMA Pool #474143 7.000% 04/15/28 85,182 84,100
462,677
Corporate Obligations (4.5%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 25,000 23,367
Beckman Coulter 6.500% 03/04/08 25,000 23,467
Ford Motor Credit Corp. Notes 7.750% 11/15/02 25,000 25,942
General Motors Acceptance Corp. Notes 5.850% 04/06/00 25,000 24,972
GTE Corp. Debentures 6.940% 04/15/28 25,000 23,665
Key Bank NA Notes 6.500% 10/15/27 25,000 23,762
Lehman Brothers Holdings 6.500% 10/01/02 25,000 24,667
Public Service New Mexico 7.100% 08/01/05 25,000 24,830
Simon Property Group, Inc. 6.750% 02/09/04 25,000 24,354
Sprint Capital Corp. 6.875% 11/15/28 25,000 22,666
Texas-New Mexico Power 6.250% 01/15/09 25,000 22,884
Union Pacific Resources Debentures 7.050% 05/15/18 25,000 22,518
287,094
Total notes and bonds (cost: $1,172,687) 1,135,643
Cash and Cash Equivalents (2.6%)
BONY Cash Reserve 194,320
Total cash and cash equivalents (cost: $194,320) 194,320
Total Investments (cost: $7,050,544) $ 7,538,545
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (58.9%)
Advertising (0.3%)
Omnicon Group, Inc. 200 $ 16,000
WPP Group PLC
Sponsored ADR 100 8,575
24,575
Aerospace & Air Transport (1.5%)
Boeing Co. 1,300 57,443
Precision Castparts Corp. 1,200 51,000
U.S. Airways Group, Inc. 200 8,713
117,156
Automotive & Auto Parts (3.1%)
Bandag, Inc. 1,500 52,031
Carlisle Companies, Inc. 1,000 48,125
Ford Motor Co. 1,200 67,725
Honda Motor Co. Ltd.
Sponsored ADR 166 14,401
TBC Corp.* 5,200 36,725
Toyota Motor Corp.
Sponsored ADR 132 8,448
Valeo Sponsored ADR 100 8,250
Volkswagon AG
Sponsored ADR 300 3,870
239,575
Banks (1.8%)
Abbey National PLC 374 14,040
Allied Irish Bank PLC
Sponsored ADR 474 12,917
Argentaria Caja Postal Banco
Sponsored ADR 200 9,200
Bank One Corp. 900 53,606
Bank of Tokyo-Mitsubshi Ltd.
Sponsored ADR 560 8,155
Barclays PLC Sponsored ADR 80 9,560
Development Bank of Singapore
Ltd. Sponsored ADR 35 1,710
Fortis (NL) Sponsored ADR 100 3,088
National Australia Bank Ltd.
Sponsored ADR 45 3,780
National Westminster
Bank Sponsored ADR 34 4,418
St. George Bank Ltd.
Sponsored ADR 165 2,290
UBS AGADR 800 11,936
134,700
Broadcasting & Publishing (1.6%)
Cablevision Systems Corp.,
Class "A" 200 $ 14,000
CBS Corp. 500 21,719
Chris-Craft Industries, Inc.* 721 33,976
Gannett Co., Inc. 400 28,550
Meredith Corp. 500 17,313
Moore Corp., Ltd. 700 5,863
121,421
Building (1.0%)
Cementos De Mexico
Sponsored ADR 7 69
CEMEX SA Sponsored
ADR Class "B" 400 3,808
Fleetwood Enterprises, Inc. 2,300 60,806
Hanson PLC Sponsored ADR 100 4,438
Sekisui House Ltd.
Unsponsored ADR 70 7,553
76,674
Business & Public Services (1.0%)
Kelly Services, Inc. Class "A" 1,800 57,825
Paychex, Inc. 300 9,563
Waste Management, Inc. 100 5,375
72,763
Chemicals (0.2%)
BASF AG ADR 200 8,786
Praxair, Inc. 200 9,788
18,574
Computer Equipment &
Services (2.7%)
Canon, Inc. Sponsored ADR 561 16,339
Cisco Systems, Inc. 1,100 70,743
Equant N.V. ADR 150 14,119
Lucent Technologies, Inc. 795 53,613
Orange PLC ADR 100 7,550
Qwest Communications, Inc. 200 6,613
SAP AG Sponsored ADR 200 6,925
TDK Corp. ADR 86 7,917
Telxon Corp. 500 3,969
Vodafone Airtouch PLC
Sponsored ADR 100 19,700
207,488
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (58.9%) (continued)
Computer Hardware (2.2%)
Compaq Computer Corp. 400 $ 9,475
Dell Computer Corp. 1,100 40,700
International Business
Machines Corp. 500 64,625
Sun Microsystem, Inc.* 800 55,100
169,900
Computer Software &
Services (2.6%)
American Online, Inc. 100 11,050
At Home Corp. 200 10,788
Autodesk, Inc. 900 26,606
BMC Software, Inc. 200 10,800
Microsoft Corp. 800 72,150
Sterling Software, Inc. 300 8,006
Veritas Software Corp. 100 9,494
Yahoo!, Inc. 300 51,675
200,569
Diversified (0.1%)
Keppel Ltd. Sponsored ADR 141 960
Vivendi Sponsored ADR 300 4,860
5,820
Electrical Equipment &
Electronics (2.9%)
Dixons Group PLC ADR 100 5,603
Electrolux AB ADR Class "B" 200 8,400
Honeywell, Inc. 100 11,587
Intel Corp. 1,200 71,400
Koninklijke Philips Electronics
NV Sponsored ADR 52 5,246
Matsushita Electric
Industrial Co., Ltd. ADR 37 7,338
Minebea Company
Ltd. Sponsored ADR 400 8,920
Mitsui Co. Ltd. Sponsored ADR 56 8,008
Nokia Corporation
Sponsored ADR 160 14,650
Park Electrochemical Corp. 700 20,125
Sony Corp. ADR 139 15,342
ST Microelectronics N.V. ADR 200 13,875
Texas Instruments, Inc. 200 29,000
219,494
Entertainment & Leisure (0.2%)
Accor SA Sponsored ADR 200 5,022
Nintendo Company Ltd. ADR 600 10,536
15,558
Financial Services (2.8%)
Allied Zurich PLC
Sponsored ADR 561 $ 14,233
American Express Co. 200 26,024
Amvescap PLC Sponsored ADR 65 3,023
Anglo American PLC ADR 98 4,656
Associates First Capital Corp. 518 22,954
Citigroup, Inc. 1,350 64,124
Countrywide Credit
Industries, Inc. 200 8,550
Federal Home Loan
Mortgage Corp. 200 11,600
Federal National Mortgage
Association 300 20,513
ING Groep N.V.
Sponsored ADR 92 5,060
Nomura Securities Ltd. ADR 80 9,366
Orix Corp. Sponsored ADR 200 9,300
Istituto Bancario
San Paolo SpA ADR 400 11,000
210,403
Food, Beverage, Tobacco (1.6%)
Coca-Cola Co. 300 18,750
Compass Group PLC
Sponsored ADR 963 9,542
LVMH Moet Hennesey
Sponsored ADR 110 6,573
Michael Foods, Inc. 2,400 56,400
Pepsico, Inc. 400 15,475
Philip Morris Companies, Inc. 400 16,075
122,815
Furniture & Apparel (4.5%)
Authentic Fitness Corp. 400 7,000
Hillenbrand Industries, Inc. 1,100 47,575
Kellwood Co. 1,700 46,113
La-Z-Boy, Inc. 3,500 80,500
Liz Claiborne, Inc. 1,900 69,350
Kimball International, Inc.
Class "B" 1,700 28,688
Reebok International* 3,500 65,187
344,413
Health Care (5.1%)
Acuson Corp.* 1,800 30,938
Amgen, Inc. 600 36,525
Bristol-Myers Squibb Co. 900 63,393
Glaxo Wellcome PLC
Sponsored ADR 200 11,325
(continued on next page)
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (58.9%) (continued)
Health Care (5.1%) (continued)
Johnson & Johnson 300 $ 29,400
McKesson HBOC, Inc. 400 12,850
Merck & Co. 1,100 81,400
Novartis AG ADR 57 4,162
Nycomed Amersham PLC
Sponsored ADR 100 3,563
Pfizer, Inc. 200 21,950
Roche Holding Ltd. ADR 110 11,307
Schering-Plough Corp. 600 31,800
Smithkline Beechman PLC ADR 189 12,486
Warner-Lambert Co. 500 34,687
385,786
Hospital Management (0.3%)
Pacificare Health Systems, Inc. 100 7,194
Wellpoint Health Networks, Inc. 200 16,975
24,169
Household Products (0.6%)
Colgate-Palmolive Co. 100 9,874
Proctor & Gamble Co. 400 35,700
Unilever PLC Sponsored ADR 73 2,719
48,293
Insurance (2.0%)
Aegon N.V. Sponsored ADR 52 3,848
Aetna, Inc. 400 35,775
AXA-UAP Sponsored ADR 150 9,347
Legal & General Group PLC
Sponsored ADR 300 3,816
Ohio Casualty Corp. 1,300 46,963
Washington Mutual, Inc. 1,400 49,524
149,273
Machinery (1.5%)
Applied Materials, Inc. 500 36,938
Baldor Electric Co. 3,100 61,612
Mannesmann AG
Sponsored ADR 81 12,112
110,662
Manufacturing (1.8%)
Corning, Inc. 400 28,050
General Electric Co. 800 90,400
General Electric Co. PLC ADR 600 6,114
Invensys PLC Sponsored ADR 969 9,167
Southcorp Ltd. Sponsored ADR 100 2,019
135,750
Merchandising -
Food & Drug (1.6%)
Albertson's, Inc. 300 $ 15,469
ITO Yokad Ltd. Sponsored ADR 100 6,788
Koninklijke Ahold N.V.
Sponsored ADR 100 3,463
Kroger Co. 600 16,762
Longs Drug Stores, Inc. 1,900 65,668
Safeway, Inc. 100 4,950
Whole Foods Market, Inc. 200 9,613
122,713
Metals & Mining (4.2%)
AK Steel Holding Corp. 2,900 65,250
ALCOA, Inc. 1,500 92,812
Broken Hill Proprietary
Company Ltd. ADR 216 5,117
Cleveland-Cliffs, Inc. 1,400 45,325
Oregon Steel Mills, Inc. 3,600 47,925
Phelps Dodge Corp. 1,000 61,938
318,367
Oil & Oil Services (3.2%)
BP Amoco PLC
Sponsored ADR 163 17,686
Royal Dutch Petroleum Co. 1,200 72,300
Tidewater, Inc. 2,100 64,050
Total Fina SA Sponsored ADR 100 6,444
Transocean offshore, Inc. 600 15,750
Valero Energy Corp. 3,300 70,743
246,973
Real Estate Development (0.3%)
City Developments Ltd.
Sponsored ADR 225 1,440
Starwood Financial Trust
Class "A" 400 24,800
26,240
Retail (3.4%)
Cifra SA ADR 200 3,742
Circuit City Stores -
Circuit City Group 300 27,900
Costco Companies, Inc. 200 16,013
Dayton-Hudson Corp. 400 26,000
Gymboree Corp.* 4,500 47,250
Home Depot, Inc. 100 6,444
Kingfisher PLC Sponsored ADR 339 7,800
Lands' End, Inc.* 1,200 58,200
Sears, Roebuck & Company 200 8,913
(continued on next page)
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (58.9%) (continued)
Retail (3.4%) (continued)
Staples, Inc. 700 $ 21,656
Wal-Mart Stores, Inc. 700 33,774
257,692
Telecommunications (2.2%)
A T & T Corp. 950 53,021
Bell Atlantic Corp. 200 13,075
British Telecommunications
PLC Sponsored ADR 62 10,618
Cable & Wireless
Communications PLC ADR 88 4,268
Ericsson LM Sponsored ADR 200 6,588
MCI Worldcom, Inc. 300 25,818
Nippon Telegraph & Telephone
Sponsored ADR 293 18,349
Singapore Telecom ADR 46 789
SK Telecom Co. Ltd. ADR 200 3,400
Swisscom AG Sponsored ADR 100 3,838
Telebras Sponsored ADR 100 9,019
Telecom Italia SpA
Sponsored ADR 100 10,519
Telefonica SA ADR 0.02 3
Telefonos De Mexico
ADR Class "A' 100 8,081
VNU N.V. Sponsored ADR 95 3,796
171,182
Transportation (1.4%)
Alexander & Baldwin, Inc. 2,400 53,400
Norfolk Southern Corp. 1,600 48,200
Peninsular & Oriental
Sponsored ADR 286 8,585
110,185
Utilities (0.9%)
Korea Electric Power Corp.
Sponsored ADR 500 $ 10,250
PG&E Corp. 1,700 55,250
65,500
Miscellaneous (0.3%)
Fuji Photo Film Ltd. ADR 367 13,945
UPM-Kymmene Corp.
Sponsored ADR 200 6,288
20,233
Total common stock (cost: $4,129,751) 4,494,916
Money Market Mutual Funds (2.2%)
Federated Investors
Prime Obligation 170,000 170,000
Total money market
mutual funds (cost: $170,000) 170,000
Mutual Funds (3.6%)
Federated High Yield Fund 31,195 272,957
Total mutual funds (cost: $300,000) 272,957
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
MODERATE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (31.5%)
U.S. Government & Agency Obligations (11.8%)
U.S. Treasury Bonds 6.500% 11/15/26 $ 125,000 $ 129,864
U.S. Treasury Bonds 8.000% 11/15/21 50,000 60,289
U.S. Treasury Notes 6.250% 04/30/01 375,000 379,748
U.S. Treasury Notes 6.250% 02/28/02 325,000 329,875
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 104,370 100,065
999,841
Mortgage Backed Securities (10.9%)
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 150,415 141,477
FNMA Pool 5.625% 05/14/04 150,000 145,359
GNMA Pool #482825 6.000% 11/15/28 149,698 139,951
GNMA Pool #454007 6.500% 04/15/28 219,857 211,595
GNMA Pool #474143 7.000% 04/15/28 191,659 189,247
827,629
Corporate Obligations (8.8%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 50,000 46,734
Beckman Coulter 7.450% 03/04/08 50,000 46,934
Ford Motor Credit Corp. Notes 7.750% 11/15/02 50,000 51,884
General Motors Acceptance Corp. Notes 5.850% 04/06/00 50,000 49,945
GTE Corp. Debentures 6.940% 04/15/28 50,000 47,330
Key Bank NA Notes 6.500% 10/15/27 50,000 47,525
Lehman Brothers Holdings 6.500% 10/01/02 50,000 49,332
Public Service New Mexico 7.100% 08/01/05 50,000 49,660
Simon Property Group, Inc. 6.750% 02/09/04 50,000 48,708
Sprint Capital Corp. 6.875% 11/15/28 50,000 45,331
Texas-New Mexico Power 6.250% 01/15/09 50,000 45,768
Union Pacific Resources Debentures 7.050% 05/15/18 50,000 45,036
574,187
Total notes and bonds (cost: $2,468,759) 2,401,657
Short-Term Notes and Bonds (2.0%)
American General Finance 4.780% 07/06/99 150,000 149,900
Total short-term notes and bonds (cost: $149,900) 149,900
Cash and Cash Equivalents (1.8%)
BONY Cash Reserve 134,110
Total cash and cash equivalents (cost: $134,110) 134,110
Total Investments (cost: $7,352,520) $ 7,623,540
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (40.8%)
Advertising (0.2%)
Omnicon Group, Inc. 100 $ 8,000
WPP Group PLC
Sponsored ADR 44 3,773
11,773
Aerospace & Air Transport (1.1%)
Boeing Co. 800 35,350
Precision Castparts Corp. 700 29,750
U.S. Airways Group, Inc. 100 4,356
69,456
Automotive & Auto Parts (2.1%)
Bandag, Inc. 900 31,219
Carlisle Companies, Inc. 600 28,875
Ford Motor Co. 700 39,506
Honda Motor Co. Ltd.
Sponsored ADR 77 6,680
TBC Corp.* 3,000 21,187
Toyota Motor Corp.
Sponsored ADR 61 3,904
Valeo Sponsored ADR 43 3,548
Volkswagon AG
Sponsored ADR 179 2,309
137,228
Banks (1.1%)
Abbey National PLC 173 6,494
Allied Irish Bank PLC
Sponsored ADR 200 5,450
Argentaria Caja Postal Banco
Sponsored ADR 100 4,600
Bank One Corp. 600 35,738
Bank of Tokyo-Mitsubshi Ltd.
Sponsored ADR 259 3,772
Barclays PLC Sponsored ADR 36 4,302
Development Bank of Singapore
Ltd. Sponsored ADR 16 782
Fortis (NL) Sponsored ADR 29 896
National Australia Bank Ltd.
Sponsored ADR 21 1,764
National Westminster
Bank Sponsored ADR 16 2,079
St. George Bank Ltd.
Sponsored ADR 79 1,096
UBS AGADR 373 5,565
72,538
Broadcasting & Publishing (1.0%)
Cablevision Systems Corp.,
Class "A" 100 $ 7,000
CBS Corp. 300 13,031
Chris-Craft Industries, Inc.* 415 19,557
Gannett Co., Inc. 200 14,275
Meredith Corp. 300 10,388
Moore Corp., Ltd. 400 3,350
67,601
Building (0.7%)
Cementos De Mexico
Sponsored ADR 3 29
CEMEX SA Sponsored
ADR Class "B" 200 1,904
Fleetwood Enterprises, Inc. 1,300 34,369
Hanson PLC Sponsored ADR 143 6,346
Sekisui House Ltd.
Unsponsored ADR 23 2,482
45,130
Business & Public Services (0.8%)
Kelly Services, Inc. Class "A" 1,100 35,338
Paychex, Inc. 250 7,968
Waste Management, Inc. 100 5,375
48,681
Chemicals (0.1%)
BASF AG ADR 100 4,393
Praxair, Inc. 100 4,894
9,287
Computer Equipment &
Services (1.8%)
Canon, Inc. Sponsored ADR 261 7,602
Cisco Systems, Inc. 700 45,018
Equant N.V. ADR 69 6,495
Lucent Technologies, Inc. 447 30,144
Orange PLC ADR 44 3,322
Qwest Communications, Inc. 100 3,306
SAP AG Sponsored ADR 100 3,463
Telxon Corp. 400 3,175
TDK Corp. ADR 78 7,181
Vodafone Airtouch PLC
Sponsored ADR 44 8,668
118,374
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (40.8%) (continued)
Computer Hardware (1.6%)
Compaq Computer Corp. 300 $ 7,106
Dell Computer Corp. 700 25,900
International Business
Machines Corp. 300 38,775
Sun Microsystem, Inc.* 500 34,438
106,219
Computer Software &
Services (1.8%)
At Home Corp. 100 5,394
Autodesk, Inc. 500 14,781
BMC Software, Inc. 100 5,400
Microsoft Corp. 500 45,093
Sterling Software, Inc. 200 5,338
Veritas Software Corp. 100 9,494
Yahoo!, Inc. 200 34,450
119,950
Diversified (0.1%)
Keppel Ltd. Sponsored ADR 69 470
Vivendi Sponsored ADR 100 1,620
2,090
Electrical Equipment &
Electronics (1.7%)
Electrolux AB ADR Class "B" 100 4,200
Dixons Group PLC ADR 45 2,521
Honeywell, Inc. 100 11,588
Intel Corp. 800 47,600
Koninklijke Philips Electronics
NV Sponsored ADR 22 2,219
Matsushita Electric
Industrial Co., Ltd. ADR 17 3,371
Minebea Company
Ltd. Sponsored ADR 160 3,568
Mitsui Co. Ltd. Sponsored ADR 26 3,718
Nokia Corporation
Sponsored ADR 52 4,761
Park Electrochemical Corp. 200 5,750
Sony Corp. ADR 68 7,506
ST Microelectronics N.V. ADR 88 6,105
Texas Instruments, Inc. 100 14,500
117,407
Entertainment & Leisure (0.1%)
Accor SA Sponsored ADR 93 2,335
Nintendo Company Ltd. ADR 200 3,512
5,847
Financial Services (1.8%)
Allied Zurich PLC
Sponsored ADR 266 $ 6,748
American Express Co. 100 13,013
Amvescap PLC Sponsored ADR 29 1,349
Anglo American PLC ADR 40 1,905
Associates First Capital Corp. 314 13,913
Citigroup, Inc. 800 38,000
Countrywide Credit
Industries, Inc. 100 4,275
Federal Home Loan
Mortgage Corp. 100 5,800
Federal National Mortgage
Association 200 13,675
ING Groep N.V.
Sponsored ADR 42 2,310
Nomura Securities Ltd. ADR 38 4,449
Orix Corp. Sponsored ADR 98 4,557
Istituto Bancario
San Paolo SpA ADR 199 5,473
115,467
Food, Beverage, Tobacco (1.1%)
Coca-Cola Co. 200 12,500
Compass Group PLC
Sponsored ADR 435 4,311
LVMH Moet Hennesey
Sponsored ADR 48 2,892
Michael Foods, Inc. 1,200 28,200
Pepsico, Inc. 300 11,606
Philip Morris Companies, Inc. 300 12,056
71,565
Furniture & Apparel (3.0%)
Authentic Fitness Corp. 200 3,500
Hillenbrand Industries, Inc. 600 25,950
Kellwood Co. 1,100 29,837
La-Z-Boy, Inc. 2,100 48,300
Liz Claiborne, Inc. 1,100 40,150
Kimball International, Inc.
Class "B" 700 11,813
Reebok International* 2,000 37,250
196,800
Health Care (3.7%)
Acuson Corp.* 1,100 18,906
Amgen, Inc. 400 24,350
Bristol-Myers Squibb Co. 600 42,262
Glaxo Wellcome PLC
Sponsored ADR 100 5,663
(continued on next page)
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (40.8%) (continued)
Health Care (3.7%) (continued)
Johnson & Johnson 200 $ 19,600
McKesson HBOC, Inc. 200 6,425
Merck & Co. 800 59,200
Novartis AG ADR 26 1,898
Nycomed Amersham PLC
Sponsored ADR 44 1,568
Pfizer, Inc. 100 10,975
Roche Holding Ltd. ADR 50 5,140
Schering-Plough Corp. 400 21,200
Smithkline Beechman PLC ADR 85 5,615
Warner-Lambert Co. 300 20,812
243,614
Hospital Management (0.4%)
Pacificare Health Systems, Inc. 100 7,194
Wellpoint Health Networks, Inc. 200 16,975
24,169
Household Products (0.6%)
Colgate-Palmolive Co. 100 9,875
Proctor & Gamble Co. 300 26,775
Unilever PLC Sponsored ADR 40 1,490
38,140
Insurance (1.5%)
Aegon N.V. Sponsored ADR 24 1,776
Aetna, Inc. 300 26,831
AXA-UAP Sponsored ADR 69 4,300
Legal & General Group PLC
Sponsored ADR 100 1,272
Ohio Casualty Corp. 800 28,900
Washington Mutual, Inc. 900 31,837
94,916
Machinery (1.0%)
Applied Materials, Inc. 300 22,163
Baldor Electric Co. 1,800 35,774
Mannesmann AG
Sponsored ADR 28 4,187
62,124
Manufacturing (1.2%)
Corning, Inc. 200 14,024
General Electric Co. 500 56,500
General Electric Co. PLC ADR 300 3,057
Invensys PLC Sponsored ADR 443 4,191
Southcorp Ltd. Sponsored ADR 45 909
78,681
Merchandising -
Food & Drug (1.2%)
Albertson's, Inc. 200 $ 10,313
ITO Yokad Ltd. Sponsored ADR 53 3,597
Koninklijke Ahold N.V.
Sponsored ADR 47 1,628
Kroger Co. 400 11,175
Longs Drug Stores, Inc. 1,200 41,475
Safeway, Inc. 100 4,950
Whole Foods Market, Inc. 100 4,806
77,944
Metals & Mining (2.9%)
AK Steel Holding Corp. 1,800 40,500
ALCOA, Inc. 900 55,687
Broken Hill Proprietary
Company Ltd. ADR 100 2,369
Cleveland-Cliffs, Inc. 800 25,900
Oregon Steel Mills, Inc. 1,800 23,963
Phelps Dodge Corp. 600 37,162
185,581
Oil & Oil Services (2.3%)
BP Amoco PLC
Sponsored ADR 77 8,355
Royal Dutch Petroleum Co. 700 42,175
Tidewater, Inc. 1,300 39,650
Total Fina SA Sponsored ADR 90 5,799
Transocean offshore, Inc. 400 10,500
Valero Energy Corp. 1,900 40,731
147,210
Real Estate Development (0.2%)
City Developments Ltd.
Sponsored ADR 104 666
Starwood Financial Trust
Class "A" 200 12,400
13,066
Retail (2.4%)
Cifra SA ADR 100 1,871
Circuit City Stores -
Circuit City Group 200 18,600
Costco Companies, Inc. 100 8,006
Dayton-Hudson Corp. 300 19,500
Gymboree Corp.* 2,400 25,200
Home Depot, Inc. 100 6,444
Kingfisher PLC Sponsored ADR 152 3,498
Lands' End, Inc.* 600 29,100
Sears, Roebuck & Company 100 4,456
(continued on next page)
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
Market
Description Shares Value
Common Stock (40.8%) (continued)
Retail (2.4%) (continued)
Staples, Inc. 500 $ 15,469
Wal-Mart Stores, Inc. 500 24,125
156,269
Telecommunications (1.7%)
A T & T Corp. 750 41,858
Bell Atlantic Corp. 200 13,075
British Telecommunications
PLC Sponsored ADR 27 4,624
Cable & Wireless
Communications PLC ADR 41 1,989
Ericsson LM Sponsored ADR 100 3,294
MCI Worldcom, Inc. 200 17,213
Nippon Telegraph & Telephone
Sponsored ADR 134 8,392
Singapore Telecom ADR 21 360
SK Telecom Co. Ltd. ADR 100 1,700
Swisscom AG Sponsored ADR 45 1,727
Telebras Sponsored ADR 44 3,968
Telecom Italia SpA
Sponsored ADR 44 4,628
Telefonos De Mexico
ADR Class "A' 44 3,556
VNU N.V. Sponsored ADR 42 1,678
108,062
Transportation (1.0%)
Alexander & Baldwin, Inc. 1.400 31,150
Norfolk Southern Corp. 1,100 33,137
Peninsular & Oriental
Sponsored ADR 128 3,843
68,130
Utilities (0.5%)
Korea Electric Power Corp.
Sponsored ADR 300 $ 6,150
PG&E Corp. 900 29,250
35,400
Miscellaneous (0.1%)
Fuji Photo Film Ltd. ADR 169 6,422
UPM-Kymmene Corp.
Sponsored ADR 100 3,144
9,566
Total common stock (cost: $2,443,631) 2,658,285
Money Market Mutual Funds (2.3%)
Federated Investors
Prime Obligation 150,000 150,000
Total money market
mutual funds (cost: $150,000) 150,000
Mutual Funds (3.4%)
Federated High Yield Fund 25,615 224,129
Total mutual funds (cost: $250,000) 224,129
*does not pay cash dividends
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
<TABLE>
<CAPTION>
AUL American Series Fund, Inc.
SCHEDULE OF INVESTMENTS
CONSERVATIVE INVESTOR PORTFOLIO (continued)
June 30, 1999
(unaudited)
<S> <C> <C> <C> <C>
Interest Maturity Principal Market
Description Rate Date Amount Value
Long-Term Notes and Bonds (47.0%)
U.S. Government & Agency Obligations (14.3%)
U.S. Treasury Bonds 6.500% 11/15/26 $ 125,000 $ 129,864
U.S. Treasury Bonds 8.000% 11/15/21 75,000 90,434
U.S. Treasury Notes 6.250% 04/30/01 550,000 556,963
U.S. Treasury Notes 6.250% 02/28/02 150,000 152,250
U.S. Treasury Inflation Indexed Bonds 3.375% 01/15/07 156,555 150,096
1,079,607
Mortgage Backed Securities (17.2%)
Federal Home Loan Mortgage Corp. Gold Pool #C20918 6.000% 01/01/29 200,553 188,636
FNMA Pool 5.625% 05/14/04 200,000 193,812
GNMA Pool #482825 6.000% 11/15/28 199,597 186,601
GNMA Pool #456155 6.500% 04/15/28 289,382 278,507
GNMA Pool #474143 7.000% 04/15/28 276,840 273,358
1,120,914
Corporate Obligations (15.5%)
Anheuser-Busch Cos. Inc. Debentures 6.750% 12/15/27 75,000 70,102
Beckman Coulter 7.450% 03/04/08 75,000 70,402
Ford Motor Credit Corp. Notes 7.750% 11/15/02 75,000 77,827
General Motors Acceptance Corp. Notes 5.850% 04/06/00 75,000 74,916
GTE Corp. Debentures 6.940% 04/15/28 75,000 70,994
Key Bank NA Notes 6.500% 10/15/27 75,000 71,287
Lehman Brothers Holdings 6.500% 10/01/02 75,000 74,000
Public Service New Mexico 7.100% 08/01/05 75,000 74,490
Simon Property Group, Inc. 6.750% 02/09/04 75,000 73,062
Sprint Capital Corp. 6.875% 11/15/28 75,000 67,997
Texas-New Mexico Power 6.250% 01/15/09 75,000 68,652
Union Pacific Resources Debentures 7.050% 05/15/18 75,000 67,553
861,282
Total notes and bonds (cost: $3,153,241) 3,061,803
Short-Term Notes and Bonds (2.0%)
American General Finance 4.780% 07/06/99 150,000 149,900
John Deere Capital Corp. 4.780% 07/09/99 150,000 149,900
Total short-term notes and bonds (cost: $299,800) 299,800
Cash and Cash Equivalents (1.9%)
BONY Cash Reserve 118,406
Total cash and cash equivalents (cost: $118,406) 118,406
Total Investments (cost: $6,415,078) $ 6,512,423
</TABLE>
All investments are in United States enterprises.
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
The AUL American Series Fund, Inc. (Fund) was incorporated under the laws of
Maryland on July 26, 1989, and is registered under the Investment Company Act of
1940, as amended, as an open-end, diversified management investment company. As
a "series" type of mutual fund, the Fund issues shares of common stock relating
to separate investment portfolios consisting of the Equity Portfolio, Money
Market Portfolio, Bond Portfolio, Managed Portfolio, Tactical Asset Allocation
Portfolio (Tactical Asset), Aggressive Investor Portfolio, Moderate Investor
Portfolio and Conservative Investor Portfolio, hereinafter, referred to as
Portfolios. The Aggressive Investor Portfolio, Moderate Investor Portfolio, and
Conservative Investor Portfolio are collectively referred to as the LifeStyle
Portfolios. Currently, the Fund offers shares only to separate accounts of
American United Life Insurance Company(R) (AUL) to serve as an underlying
investment vehicle for variable annuity and variable life contracts. The Fund
commenced operations on April 10, 1990.
Investments
Securities traded on a national or international securities exchange are valued
at the last trade price. Listed securities for which no sale was reported on the
valuation date are valued at the latest bid price. Short-term notes are valued
at amortized cost which approximates market value. Fixed income securities for
which representative market quotes are readily available are valued at the
latest bid price as quoted by one or more dealers who make a market in such
securities. U.S. Government obligations are valued at the latest bid price;
however, short term obligations maturing in 60 days or less, when purchased, are
valued at amortized cost which approximates market value.
The Money Market Portfolio securities are valued at amortized cost. The Fund's
use of the amortized cost method is conditioned on its compliance with certain
provisions of Rule 2a-7 of the Investment Company Act of 1940. AUL (the
Investment Advisor) reviews this method of valuation to ensure that the
portfolio securities are reflected at their fair value.
Security transactions are recorded on the trade date. Realized gains and losses
are determined on specific identification basis.
Discounts and premiums on securities purchased are amortized over the life of
the respective securities.
Income and Expense
Dividend income is recorded on the ex-dividend date, and interest income is
accrued daily. Portfolio expenses are recorded on an accrual basis.
Foreign Currency Transactions
The accounting records of the Portfolios are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at prevailing exchange rates. Purchases and sales of
investment securities, dividend and interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
Net realized foreign currency exchange gains or losses arise from sales of
foreign currencies and the difference between asset and liability amounts
initially stated in foreign currencies and the U.s. dollar value of the amounts
actually received or paid. net unrealized foreign currency translation gains or
losses arise from changes in the value of assets and liabilities, other than
portfolio securities, resulting from changes in the exchange rates.
Net realized and unrealized foreign currency exchange gains or losses occurring
during the holding period of portfolio securities are a component of realized
gain (loss) on investments and unrealized appreciation (depreciation) on
investments, respectively.
Forward Foreign Currency Exchange Contracts
The Tactical Asset Allocation and LifeStyle Portfolios may enter into forward
foreign currency exchange contracts for the purpose of settling specific
purchases or sales of securities denominated in a foreign currency or to hedge
the Portfolios' exposure to foreign currency exchange rate fluctuations. When
required, the Portfolios will segregate assets in an amount sufficient to cover
their obligations under the hedge contracts. The net U.S. dollar value of
foreign currency underlying all contractual commitments held by the Portfolios
and the resulting unrealized appreciation or depreciation are determined daily
using prevailing exchange rates. Forward contracts involve elements of market
risk in excess of the amount reflected in the Statements of Net Assets.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
1. Summary of Significant Accounting Policies (continued)
The Portfolios bear the risk of an unfavorable change in the foreign currency
exchange rate underlying the forward contract. Additionally, losses may arise if
the counterparties do not perform under the contract terms.
There are no outstanding forward foreign currency exchange contracts.
Deferred Organization Costs
Expenses incurred by the Fund in connection with its organization have been
capitalized and are amortized over five years on a straight-line basis.
Taxes
The fund qualifies as a regulated investment company under section M of the
Internal Revenue Code. The Fund's policy is to distribute all income to
shareholders, therefore, no provision has been made for income taxes.
Dividend and Capital Gain Distributions
For the Money Market Portfolio, dividends from net investment income are
declared and paid daily. During 1999, for all other portfolios, dividends from
net investment income will be declared and paid annually. Distributions from net
realized gains on investments are declared and paid at least annually for all
portfolios.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
2. Transactions with AUL
As of June 30, 1999, AUL's investment at value in the Fund is:
Equity $ 6,958,772
Tactical Asset Allocation 672,563
Aggressive Investor 5,515,000
Moderate Investor 5,369,000
Conservative Investor 5,285,000
$ 23,800,335
The Fund has an investment advisory agreement with AUL to act as its investment
advisor. AUL has a sub-advisory agreement with Dean Investment Associates (Dean)
under which Dean acts as the Sub-Advisor to the Tactical Asset Allocation
Portfolio. AUL also has a sub-advisory agreement with Credit Suisse Asset
Management under which Credit Suisse Asset Management acts as the Sub-Advisor to
a portion of the assets of the LifeStyle Portfolios.
AUL has agreed that its fees may be reduced if the aggregate expenses of the
Portfolios exceed 1% of the average daily net assets during the year. For the
six months ended June 30, 1999, AUL's investment advisory fee was reduced for
the LifeStyle Portfolios. To the extent that AUL has reduced its advisory fees
to prevent a Portfolio's aggregate expenses from exceeding 1% of its average
daily net assets, it may increase its advisory fee during any of the next
succeeding 5 years, provided that the aggregate expenses in any given year do
not exceed 1% of the average daily net assets in that year. The total amount of
any increase in AUL's fees will not exceed the amount of the prior fee
reduction.
Under the Investment Advisory Agreement, the Investment Adviser is compensated
for its services by a monthly fee based on an annual percentage of the average
daily net assets of each Portfolio as follows:
Equity 0.50%
Money Market 0.40%
Bond 0.50%
Managed 0.50%
Tactical Asset Allocation 0.80%
Aggressive Investor 0.70%
Moderate Investor 0.70%
Conservative Investor 0.70%
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
2. Transactions with AUL (continued)
AUL may terminate the policy of reducing its fee and/or assuming Fund expenses
upon 30 days prior written notice to the Fund, and in any event, the policy will
automatically terminate if the Investment Advisory Agreement is terminated. The
total investment advisory fee incurred during the six months ended June 30,
1999, for all of the Portfolios was $858,324.
As a result of certain Portfolio expenses exceeding 1% of the average daily net
assets, AUL has reduced its investment advisory fee by:
1999 Previous Years
Tactical Asset Allocation $ 0 $ 11,951
Aggressive Investor 27,880 20,889
Moderate Investor 25,169 21,689
Conservative Investor 27,452 21,330
$ 80,501 $ 75,859
During 1999 AUL has increased its advisory fee for the Tactical Asset Allocation
Portfolio by $170.
Certain directors of the Fund are officers of AUL.
3. Agreements with Banks
The Fund has agreements with The Bank of New York (Bank) whereby the Bank serves
as custodian of the securities and other assets of the Fund, and as the fund
accountant.
4. Investment Transactions
Purchases and sales of investment securities (excluding short-term securities
and money market mutual funds) during the six months ended June 30, 1999, were:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Common Stock:
Purchases $ 13,413,229 $ - $ - $ 5,780,426 $ 690,112
Proceeds from sales 17,215,351 - - 8,205,474 976,567
Corporate Bonds:
Purchases - - 9,787,074 3,010,417 251,145
Proceeds from sales - - 5,644,682 2,936,205 305,522
Government Bonds:
Purchases - - 20,533,881 10,755,474 598,635
Proceeds from sales - - 20,397,071 7,661,515 302,436
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Aggressive Moderate Conservative
Investor Investor Investor
Common Stock:
Purchases $ 2,256,156 $ 1,925,815 $ 941,220
Proceeds from sales 2,159,425 1,817,917 1,135,480
Corporate Bonds:
Purchases 148,293 296,587 444,880
Proceeds from sales - - -
Government Bonds:
Purchases 581,214 770,325 807,245
Proceeds from sales 432,373 654,993 911,051
</TABLE>
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Authorized Capital Shares
The Fund has 325,000,000 authorized shares of $.001 par value capital stock,
which includes 20,000,000 unallocated shares. The remaining shares are allocated
to each of the Fund's portfolios as follows:
Equity Portfolio 20,000,000
Money Market Portfolio 125,000,000
Bond Portfolio 20,000,000
Managed Portfolio 40,000,000
Tactical Asset Allocation Portfolio 25,000,000
Aggressive Investor Portfolio 25,000,000
Moderate Investor Portfolio 25,000,000
Conservative Investor Portfolio 25,000,000
305,000,000
6. Net Assets
Net Assets at June 30, 1999, are:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Proceeds from shares sold
and reinvested distributions $ 127,734,757 $ 503,457,204 $ 129,397,338 $ 108,261,778 $ 7,477,387
Cost of shares redeemed (59,607,984) (404,473,352) (78,199,732) (47,039,506) (1,667,967)
Undistributed net investment
income 710,354 - 1,424,249 1,208,496 81,245
Undistributed net realized
gain 12,192,477 - (27,197) 5,519,454 81,079
Unrealized appreciation
(depreciation) 19,505,692 - (1,156,298) 8,776,227 599,670
$ 100,535,296 $ 98,983,852 $ 51,438,360 $ 76,726,449 $ 6,571,414
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
LifeStyle Portfolios
Aggressive Moderate Conservative
Investor Investor Investor
Proceeds from shares sold
and reinvested distributions $ 7,149,612 $ 7,235,391 $ 6,522,886
Cost of shares redeemed (468,086) (190,749) (349,773)
Undistributed net investment
income 52,518 81,761 101,596
Undistributed net realized
gain 250,563 213,242 186,075
Unrealized appreciation
(depreciation) 488,001 271,020 97,345
$ 7,472,608 $ 7,610,665 $ 6,558,129
</TABLE>
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
7. Unrealized Appreciation (Depreciation)
Unrealized Appreciation (Depreciation) for book and tax purposes at June 30,
1999, are:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
Appreciation $ 23,051,184 $ - $ 148,775 $ 11,089,853 $ 894,148
Depreciation (3,545,492) - (1,305,073) (2,313,626) (294,478)
$ 19,505,692 $ - $ (1,156,298) $ 8,776,227 $ 599,670
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Aggressive Moderate Conservative
Investor Investor Investor
Appreciation $ 879,947 $ 621,051 $ 376,888
Depreciation (391,946) (350,031) (279,543)
$ 488,001 $ 271,020 $ 97,345
</TABLE>
8. Net Shareholders
Shares outstanding at June 30, 1999, are:
<TABLE>
<CAPTION>
Portfolio
<S> <C> <C> <C> <C> <C>
Equity Money Market Bond Managed Tactical Asset
AUL 309,609 - - - 50,001
Dean Investment Associates - - - - 50,000
AUL American Unit Trust 1,914,587 15,442,318 1,256,259 1,837,953 3,285
AUL Group Retirement Annuity
Separate Account II 1,703,050 73,753,891 2,857,033 2,287,804 16,399
AUL American Individual
Unit Trust 535,443 9,429,119 685,565 672,883 368,851
AUL American Individual
Variable Life Unit Trust 10,375 358,524 29,545 4,613 -
4,473,064 98,983,852 4,828,402 4,803,253 488,536
</TABLE>
<TABLE>
<CAPTION>
LifeStyle Portfolios
<S> <C> <C> <C>
Aggressive Moderate Conservative
Investor Investor Investor
AUL 500,000 500,000 500,000
AUL American Unit Trust 13,893 23,154 12,938
AUl Group Retirement Annuity
Separate Account I 54,783 49,972 60,534
AUL Group Retirement Annuity
Separate Account II 108,788 135,633 47,004
677,464 708,759 620,476
</TABLE>
41
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Equity Portfolio
<S> <C> <C> <C> <C> <C>
Six Months
ended For years ended
June 30, 1999
(unaudited) Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.22 $ 0.48 $ 0.42 $ 0.39 $ 0.37
Expense 0.06 0.13 0.13 0.11 0.09
Net investment income 0.16 0.35 0.29 0.28 0.28
Net gain (loss) on investments 2.05 1.23 4.64 2.44 2.12
Shareholder distributions:
Net investment income - (0.35) (0.30) (0.28) (0.27)
Realized gain - (1.99) (0.25) - (0.19)
Net increase (decrease) 2.21 (0.76) 4.38 2.44 1.94
Net asset value at
beginning of period 20.27 21.03 16.65 14.21 12.27
Net asset value at end
of period $ 22.48 $ 20.27 $ 21.03 $ 16.65 $ 14.21
Ratio to average net assets:*
Expense 0.60% 0.62% 0.66% 0.70% 0.70%
Net investment income 1.48% 1.61% 1.52% 1.81% 2.08%
Total return** 10.87% 7.10% 29.59% 19.17% 19.45%
Portfolio turnover rate 18% 23% 9% 11% 10%
Shares outstanding 4,473,064 4,710,131 3,816,406 3,042,989 2,483,962
</TABLE>
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Money Market Portfolio
<S> <C> <C> <C> <C> <C>
Six Months
ended For years ended
June 30, 1999
(unaudited) Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.02 $ 0.06 $ 0.06 $ 0.06 $ 0.06
Expense 0.00 0.01 0.01 0.01 0.01
Net investment income 0.02 0.05 0.05 0.05 0.05
Net gain (loss) on investments - - - - -
Shareholder distributions:
Net investment income (0.02) (0.05) (0.05) (0.05) (0.05)
Realized gain - - - - -
Net increase (decrease) - - - - -
Net asset value at
beginning of period 1.00 1.00 1.00 1.00 1.00
Net asset value at end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Ratio to average net assets:*
Expense 0.56% 0.61% 0.66% 0.70% 0.73%
Net investment income 4.28% 4.82% 4.83% 4.64% 5.13%
Total return** 2.13% 4.86% 4.85% 4.63% 5.09%
Portfolio turnover rate - - - - -
Shares outstanding 98,983,852 82,055,253 55,756,942 40,227,475 24,290,006
</TABLE>
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Bond Portfolio
<S> <C> <C> <C> <C> <C>
Six Months
ended For years ended
June 30, 1999
(unaudited) Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.33 $ 0.67 $ 0.67 $ 0.70 $ 0.75
Expense 0.03 0.07 0.07 0.08 0.08
Net investment income 0.30 0.60 0.60 0.62 0.67
Net gain (loss) on investments (0.48) 0.36 0.25 (0.39) 1.07
Shareholder distributions:
Net investment income - (0.60) (0.59) (0.63) (0.66)
Realized gain - (0.21) (0.23) (0.01) (0.01)
Net increase (decrease) (0.18) 0.15 0.03 (0.41) 1.07
Net asset value at
beginning of period 10.83 10.68 10.65 11.06 9.99
Net asset value at end
of period $ 10.65 $ 10.83 $ 10.68 $ 10.65 $ 11.06
Ratio to average net assets:*
Expense 0.60% 0.62% 0.67% 0.71% 0.70%
Net investment income 5.50% 5.48% 5.53% 5.85% 6.28%
Total return** (1.63%) 8.80% 7.85% 2.23% 17.79%
Portfolio turnover rate 51% 132% 107% 62% 55%
Shares outstanding 4,828,402 4,624,949 3,252,044 2,648,089 2,298,581
</TABLE>
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Managed Portfolio
<S> <C> <C> <C> <C> <C>
Six Months
ended For years ended
June 30, 1999
(unaudited) Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.29 $ 0.61 $ 0.58 $ 0.53 $ 0.54
Expense 0.05 0.10 0.10 0.09 0.08
Net investment income 0.24 0.51 0.48 0.44 0.46
Net gain (loss) on investments 0.60 0.79 2.34 1.01 1.62
Shareholder distributions:
Net investment income - (0.51) (0.48) (0.44) (0.46)
Realized gain - (0.99) (0.41) (0.03) (0.20)
Net increase (decrease) 0.84 (0.20) 1.93 0.98 1.42
Net asset value at
beginning of period 15.13 15.33 13.40 12.42 11.00
Net asset value at end
of period $ 15.97 $ 15.13 $ 15.33 $ 13.40 $ 12.42
Ratio to average net assets:*
Expense 0.60% 0.62% 0.67% 0.70% 0.70%
Net investment income 3.15% 3.27% 3.27% 3.43% 3.86%
Total return** 5.59% 8.30% 20.95% 11.79% 19.13%
Portfolio turnover rate 25% 63% 27% 34% 35%
Shares outstanding 4,803,253 4,832,940 3,945,223 3,215,189 2,484,037
</TABLE>
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
FINANCIAL HIGHLIGHTS (continued)
45
<PAGE>
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Tactical Asset Allocation Portfolio
<S> <C> <C> <C> <C> <C>
Six Months July 31, 1995
ended For years ended (commencement)
June 30, 1999 to
(unaudited) Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
Per Share Data:
Investment Income $ 0.23 $ 0.47 $ 0.41 $ 0.39 $ 0.20
Expense 0.07 0.13 0.13 0.11 0.04
Net investment income 0.16 0.34 0.28 0.28 0.16
Net gain (loss) on investments 0.36 0.58 1.75 1.38 0.49
Shareholder distributions:
Net investment income - (0.34) (0.28) (0.28) (0.16)
Realized gain - (0.09) (0.96) (0.17) (0.05)
Net increase (decrease) 0.52 0.49 0.79 1.21 0.44
Net asset value at
beginning of period 12.93 12.44 11.65 10.44 10.00
Net asset value at end
of period $ 13.45 $ 12.93 $ 12.44 $ 11.65 $ 10.44
Ratio to average net assets:*
Expense 0.97% 1.00% 1.00% 1.00% 1.00%
Expense before expense
reductions 0.97% 1.01% 1.30% 1.06% 1.00%
Net investment income 2.48% 2.64% 2.24% 2.62% 3.70%
Total return** 4.01% 7.20% 15.48% 15.67% 6.49%
Portfolio turnover rate 24% 41% 52% 25% 4%
Shares outstanding 488,536 500,212 357,897 184,046 109,147
</TABLE>
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
The per share amounts are based on shares outstanding throughout the year.
Aggressive Investor Portfolio Moderate Investor Portfolio
<S> <C> <C> <C> <C>
Six Months ended Six Months ended
March 31, 1998 March 31, 1998
June 30, 1999 (commencement) June 30, 1999 (commencement)
(unaudited) to Dec. 31, 1998 (unaudited) to Dec. 31, 1998
Per Share Data:
Investment Income $ 0.13 $ 0.18 $ 0.17 $ 0.25
Expense 0.05 0.09 0.05 0.09
Net investment income 0.08 0.09 0.12 0.16
Net gain on investments 0.58 0.41 0.30 0.36
Shareholder distributions:
Net investment income - (0.09) - (0.16)
Realized gain - (0.04) - (0.04)
Net increase (decrease) 0.66 0.37 0.42 0.32
Net asset value at
beginning of period 10.37 10.00 10.32 10.00
Net asset value at end
of period $ 11.03 $ 10.37 $ 10.74 $ 10.32
Ratio to average net assets:*
Expense 0.90% 0.95% 0.99% 0.94%
Expense before expense
reductions 1.71% 1.34% 1.70% 1.34%
Net investment income 1.51% 0.94% 2.28% 1.62%
Total return** 6.37% 4.96% 4.07% 5.09%
Portfolio turnover rate 38% 50% 35% 60%
Shares outstanding 677,464 644,280 708,759 659,392
</TABLE>
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
47
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
The per share amounts are based on shares outstanding throughout the year.
Conservative Investor Portfolio
Six Months ended March 31, 1998
June 30, 1999 (commencement)
(unaudited) to Dec. 31, 1998
Per Share Data:
Investment Income $ 0.21 $ 0.31
Expense 0.05 0.09
Net investment income 0.16 0.22
Net gain (loss) on investments 0.11 0.37
Shareholder distributions:
Net investment income - (0.22)
Realized gain - (0.07)
Net increase (decrease) 0.27 0.30
Net asset value at
beginning of period 10.30 10.00
Net asset value at end
of period $ 10.57 $ 10.30
Ratio to average net assets:*
Expense 0.89% 0.95%
Expense before expense
reductions 1.75% 1.35%
Net investment income 3.16% 2.21%
Total return** 2.64% 5.84%
Portfolio turnover rate 32% 82%
Shares outstanding 620,476 609,958
*annualized
**Total return for periods less than one year are not annualized. Total return
assumes reinvestment of dividends and capital gain distributions, if any.
The accompanying notes are an integral part of the financial statements.
48
<PAGE>
American United Life Insurance Company
P.O. Box 368
Indianapolis, Indiana 46206-0368
www.aul.com
P-13959B 6/99
